Assessment of the Core Inflation in Iran (Text in Persian)
Abstract
The term core inflation which means identifying inflation-targeting policies came to use in the last decade. With the help of this concept، i. e. core inflation، proposed policies can control inflation exerting any no negative effect on production. Various methods have been suggested for essessing core inflation، including many statistic methods and economic methods. Due to the fact that the term core inflation is commonly used in the developing countries، this research uses the structural vector auto- regressive method to assess the core inflation in Iran، taking into consideration the special condition of its economy. By using the joint trends of the three variables، i.e. petroleum revenue، public expenditure and liquid assets، we can make a sharp dictinction between core inflation and non core inflation. The results of this research show that inflation cannot be controlled without restricting the role of petroleum revenue and the vacilliations related to it in deciding real variables like economic growth and policy- making variables like liquid assets and governmental expenditure ، and also show that inflation can be controlled through political variables like public expenditure and liquid assets. The above mentioned procedures have no negative influence on economic growth.