Explaining the Effects of Economic Uncertainty on Macroeconomic Variables (Case Study: Iran)

Undoubtly, all individuals and societies often face the state of uncertainty. According theories related to optimal decision-making, the type of facing with uncertainty leads us to achieve a solution. This paper seeks to explain as comprehensively as possible the effects of uncertainty on Iranian economy and its consequences by employing documentary and library method in order to contribute to the future policy makings. Thus, it attempts to shows that economic uncertainty results in economic depression and removes capitals from investing in productive sector to purchasing real properties such as land: situation that already exists in Iran. In this framework, the paper has proposed some policy recommendations designed to minimize costs posed by economic uncertainty on Iranian economy.