Surveying the Monetary Shocks Impact on the Income-Expenditure Relationship in the Iran's Government with the Approach of TVPFAVAR

The aim of this survey is surveying of monetary shocks on government income-expenditure in Iran by using variable parameters during time by considering seasonal data over the period 1988 to 2014. The results show that occurrence of any shock in liquidity, increase government income and expenditures and occurrence of any shock in inflation and interest rates, reduce this relationship, but the shocks of inflation and interest rates, has weakened this relationship. Based on the results, it is suggested, to balancing the relationship of income - expenditure in the long term, the government should not focus on the tools of monetary policy.