This study examines money demand and inflation dynamics in the Islamic Republic of Iran using quarterly data for the … long-run money market equilibrium condition is identified and the short-run behavior of the inflation, measured in terms of …/01-2001/02 buoyed the demand for domestic money and contributed to the decline in inflation. Tests of model stability do not point to a …

EMs and policies became more procyclical during the recent crisis. (ii) Inflation targeting and better institutions have …, over and above better inflation outcomes. …