- Ekonomik ve Sosyal Araştırmalar Dergisi
- Cilt: 19 Sayı: 2
- The impact of the stock market on the inflation rate in Iran\'s economy
The impact of the stock market on the inflation rate in Iran\'s economy
Authors : Masoud Saadatmehr
Pages : 337-348
View : 27 | Download : 37
Publication Date : 2023-12-29
Article Type : Research
Abstract :Studies of the relationship between inflation and the stock market in different countries suggest that this relationship varies from country to country due to different economic structures. Therefore, in the present study, the effect of stock market on inflation control in Iran has been investigated. For this purpose, the annual data of 1990-2019 have been used with the help of the Autoregressive Distributed Lag method (ARDL). In the research model, inflation rate as a dependent variable and the value of stock market transactions along with liquidity variables, exchange rate and gross domestic product formed independent variables. The results showed that the variables of liquidity, exchange rate and GDP are positively affected and the value of trading in the stock market has a negative effect on inflation. Also, a one percent increase in the value of trading in the stock market reduces the inflation rate in the Iranian economy by 1.47 percent. This effect is fully realized after 1.5 years. As a result, the stock market can be used as a tool alongside other monetary and financial instruments to control inflationKeywords : borsa, enflasyon oranı, döviz kuru, likidite