Relationship between government budget deficits and inflation in the Iran's economy

Government in the economy of a country is responsible for various duties and to do these tasks uses the budget and fiscal policy as a planning and control tools. Because the different goals of economic balance in macro level such as fixing prices and unemployment inhibit any economic program is the priority, so can the government is using funds that involve income and expenses of the government to direct economic in reaching their goals in macro level. In developing countries lacked the private sector are strong, the role of government and its dimensions are larger tasks. The aim of this thesis with regard to the above is the effect of budget deficits on money growth and inflation in the years 1965–2006 in the Iranian economy.