The role of the financial market in creating and emerging from the Stagflation with an emphasis on Islamic banking

The recession is an economic situation that simultaneously creates economic inflation and economic recession and increases the unemployment rate in the country. in this research we Consider the role of the bank as the main factor in the financial market of the country and , the role of financial sector indicators in creating the country's long-term and short-term inflationary recession by using the ordinary least square (OLS) and error correction model (ECM) between 1352-1952. The results show that in the long run, the indexes of the Bank and stock market have a positive effect on the construction of a recession in the country, while the insurance has a versa correlation with the recessionary index. In the short-term results, among the financial market variables, only the coefficients of stock and insurance indices were statistically significant. This means that the bank facility index as a representative of banking activity did not affect the recession in the short run.