he Study of Trend and Causes of Iran's Inflation During (2010 -2012) and Measures Fulfilled to Subdue it

Since household welfare، production and investment is under influence of inflation so in order to set out plans to subdue inflation and to gain price stability it is crucial to detect inflation causes. This paper firstly presents the theoretical principals and reviews different studies then، Using statistical analysis of 2010-2012 period as well as structural VAR model، tries to inspect the effects of inflation causes. Based on the results، Iran’s inflation especially during 2010-2012 has not occurred just due to liquidity factor and other factors such as price reform within subsidies targeting plan and the exchange rate increase has had very important roles. The long run estimation results of model show that a ten percent increase in the volume of money، exchange rates and product price index would lead to an about 3. 8، 3. 5، 2. 7 percent increase in the price level respectively. Furthermore، the results also show that GDP has no significant effect on the price level in the long-run reflecting that Phillips curve is would be vertical.