Basis of stable conditions in various sectors of the economy, the most important factors need to move towards sustainable growth and development in all aspects is considered. One of the most important preconditions for economic stability and exit from the economic crisis, monetary and financial stability and to achieve this important should be appropriate for the proper implementation of the policy should be in monetary and fiscal. To review the monetary and fiscal policies and their role in economic variables such as current and construction government expenditures, tax revenues, revenues from oil and natural gas as variables representing fiscal policy and the statutory liquidity and deposit rates as a variable indicating monetary policy has been. In addition to the economic stability of the financial instability of the variables used to measure money. To estimate the error correction model, the method of test used is not limited. The results obtained show that the increase in capital expenditure, tax and legal deposit rates leading to increased financial stability and economic crisis is leaving and also current government spending, inflation, oil export revenues and liquidity, lead to reduced financial stability and economic crisis in the country.

The aim of this paper is to examine the interaction of monetary and fiscal policies in the Iranian economy. The study was conducted using a new Keynesian dynamic general equilibrium model with sticky prices and imperfect competition assumptions. The policy makers’ reaction functions were determined by optimizing objective functions for each economic condition. The model parameters were estimated using the Bayesian estimation method and the Dynare software. The findings show that a monetary policy has a pro-cyclical behavior while a monetary policy is counter-cyclical. Also, the fiscal leadership hypothesis is accepted in Iran. It was also demonstrated that the central bank focuses on the stabilization of inflation while the government simultaneously stabilizes the inflation and production. According to the results, monetary and fiscal policies in Iran are strategic substitutes. In addition, monetary policies can be more effective than fiscal ones in stabilizing economic fluctuations.

The aim of this study is to investigate the empirical relationship between fiscal and monetary policies and nominal stock returns in Iran using quarterly data during the period 1999-2008. The results show that the stock market of Iran is inefficient with respect to fiscal policies since the lags of governmental expenditures and taxes have significant effect on stock returns. This means that market participants do not place much faith on news about fiscal policies while fiscal policies could adversely impact the stock market. According to the results of the estimated model, the lags of money supply have no effect on nominal stock return. Therefore, stock market of Iran is efficient with respect to monetary policies. The results confirm that, contrary to fiscal policies, market participants consider monetary policies as an important factor influencing stock returns and take the changes of these policies into account in their decision makings.

Discretionary policies, lead to the expectations traps and multiple equilibria in economy, which could be the most important causes of persistent inflation. This study by using a micro foundation general equilibrium investigates expectations traps of discretionary monetary policy in dominant fiscal policy condition. Our calibrated model shows that the interest rate in these conditions is about 2.5 times greater than the rate of interest achieved by the assumption of independent monetary policy. This result shows the amount of effect of taking advantage of discretionary monetary policy, with the aim of achieving government budget, on increasing the equilibrium interest rate. This increase consequently raises the equilibrium inflation rate and results in persistent inflation traps in the economy. The model was also calibrated using data from Iran. The results show that equilibrium of Iran's economy will be achieved at the interest rate of 12%. In other words, in the interest rate of less than 12%, the benefit of inflation is more than the cost of inflation distortion.

One of the main goals of the economy of each country is to achieve an appropriate economic growth and Prices stability. To achieve these goals, governments employ two important tools, financial and monetary policies. A financial policy in which the level of government tax and spending is determined, and a monetary policy that mainly deals with managing money supply and adjusting interest rates. The financial policy is used by the government of each country while the monetary policy is used by the central bank. In resently years, debates over the relationship between financial and monetary policies have become more important in the economic literature. One of the important goals of fiscal policy makers is to keep the state budget balanced. In the event of a budget deficit, the government may borrow from the central bank or withdraw its deposits in central bank, which means money creation and financial dominance. that can cause inflation. In this situation, if the government can finance the internal deficit and the temporary budget deficit without changing the policy or at the level of prices, then a stable financial policy has been used (Kuncoro et al., 2013, p.53). On the other hand, the implementation of monetary policy to control of inflation, will increase the rate of interest, and then the future budget deficit will increase due to the financial obligations of the government, which could lead to more money and higher inflation (Baieng and et al., 2006, p.56). Sargent and Wallace (1981), showed that monetary policy, without coordinating with fiscal policies, could not maintain price stability in the short and in the long run. َ Actually, the macroeconomic goals, such as maintaining the stability of prices and growth of production depend on the proper and accurate monetary and financial policies and the coordination of these policies. In this research, we study the response of monetary policy makers to financial policies, as well as the response of financial policy makers to monetary policies, emphasizing the goal of economic stability, in Iran. The ratio of the amount of liquidity to GDP and the ratio of budget deficit to GDP respectively are considered as criteria of monetary policy and financial policies. we have tried using 1978-2013 time series data and econometric method of auto distributed lag (ARDL) and examines the dynamic relationship between fiscal and monetary policies in the face of changes in macroeconomic variables economy. The results show that the reaction of monetary policy in the face of increasing the ratio of budget deficit to GDP, appears to increase the ratio of liquidity to GDP. Also in the face of increasing the ratio of liquidity to GDP, the fiscal policy makers decrease the ratio of budget deficit to GDP. These results indicate the dominance of fiscal policy on the economy of Iran. Comparing coefficients of the variables of liquidity in financial policy reaction function and budget deficit in monetary policy reaction function shows that sensitivity of monetary policymakers in the face of fiscal policy is more than sensitivity of fiscal policymakers in the face of monetary policy. Therefore, following the increase in budget deficit, which is an instability factor in macroeconomics, the reaction of central bank, may increase inflation and therefore further instability. Other results show positive and significant relationship between oil price, interest rate, government debt to central bank, output gap and RM, inflation, exchange rate and RPB. Also the results show negative and significant relationship between inflation, exchange rate and RM and interest rate, oil price and RPB. Relationship between RPB and the output gap is not significant.

The aim of this paper is computing the welfare under different fiscal policies by using of a Dynamic Stochastic General Equilibrium model in an optimal monetary and fiscal policy framework for the Iran's economy. In order to investigating the effects of using tax instruments some different scenarios were provided. First scenario, the case with all taxes available, Second scenario, the case without consumption taxes, third scenario, the case of income and consumption taxes. The results indicate that the number of fiscal policy instruments available to the planner, plays an important role in the welfare changes in the optimal monetary and fiscal policy model. The minimum welfare loss occurs in last scenario and the maximum of welfare loss is related to second scenario. The proposal is that planner deal with determining polices in an optimum fiscal and monetary policy model, regarding available fiscal policy instruments and effects from economic shocks on welfare changes.

The Purpose of the present paper is to determine the optimum quantitative fiscal policies and their impacts on macroeconomic variables of Iran in the absence of any active monetary tool during 2001-2005. To do so, the authors have used Stochastic Optimum Control Algorithm (OPTCON): in this method, a dynamic programming and Bellman equations were used in order to minimize sequences of deviations between the actual and targeted values of macroeconomic variables such as economic growth, inflation, rate, unemployment rate, the rate of budget deficit to GDP and the trade balance by a dynamic macro-econometric equation system. The Optimization results shows that under the fixed and crawling peg exchange regimes in which monetary policies are endogenous and inactive, the optimum fiscal policies are more expansionary than proposed values in the third economic plan. Also in the absence of monetary policy accommodation, the variables such as unemployment rate, budget deficit, and the inflation rate are badly suffered. Based on the finding of the paper the usage of a flexible exchange system and also the effective accommodation of monetary policies are recommended for the 4th Iranian development plan (2005-2009).

The present paper examines the mitigating effect of monetary and fiscal policies on the “Growth Laffer curve” (GLC) using a panel data of 38 high income countries over the period 2003-2012. Adopting generalized method of moments (GMM) estimators, the paper finds evidence substantiating the presence of an inverted-U GLC. Moreover, the evidence suggests that the GLC shifts downward by employing expansionary monetary and fiscal policies and that the tax rate turning point beyond which economic growth decline is higher in countries with higher level of debt-to-GDP ratio and money supply. These results are robust to addition of alternative controlled variables in the GLC specification. Our results strengthen the case for heterogeneous GLC across countries. As an implication, a government may enhance the efficiency within the “fiscal space” by either raising the productivity of public spending or cutting fiscal debt. Moreover, using money as a financing instrument should be carefully supervised due to its impact in generating large inflation rates and distorting capital accumulation and economic growth.

One of the most important challenges of societies in the last few decades is the destructive and repeated human activities to destroy the environment. The ecological footprint is the latest index measuring the extent of individuals’ influence and engagement in addressing the issue of climate change as well as their negative impact on the environment. The economic policies adopted by societies have a significant effect on the process of ecological footprint. Monetary and Fiscal Policies are among the most important policies that, in addition to affecting the productive and economic activities of society, also affect the environment. Therefore, the main purpose of this study is to investigate the effect of monetary and Fiscal policies on the ecological footprint in Iran during the period from 1980 to 2021 and using the structural vector autoregression method. “Liquidity and the government’s final consumption expenditures have been employed as monetary and fiscal policy tools, while economic growth, urbanization, and foreign direct investment have been utilized as control variables.” The results of this research show that foreign direct investment and urbanization have a negative and significant impact on the ecological footprint. Also, economic growth, monetary policy, Fiscal policy and the dependent variable itself have a positive and significant effect on the ecological footprint and lead to an increase in the ecological footprint during the mentioned time period. On the other hand, fiscal policy impulses in the long term have resulted in a rise in environmental degradation in Iran. The results of variance analysis in the 10th period show that monetary policy explains 6.70% and Fiscal policy 24.06% of changes in the dependent variable.