The Study of the Function of Conventional Macroeconomic Theories in Iran

The formation of macroeconomic theory in the framework of conventional economics is mainly due to the analysis and determination of economic behavior of individuals who work under the realm of a school of thought and capitalism. Intellectual foundations and structures governing the capitalist economy such as the type of ownership, the type of governance and the source of the formation of behaviors had been the origion of the emergence of special institutions such as the bank and the capital market. Consequently, a new theory of macroeconomics has arrived. In other words, macroeconomic theories are in the position of resolving the crisis and the problem of the West and are rooted in the foundations, structures and institutions of the capitalist system. The question of this research paper is: can these theories work efficiently and successfully for the Iranian economy and solve its problems? In order to answer this question with an empirical-comparative method, the theories that have been formed according to the prevailing atmosphere in the capitalist system are examined, then the structures, situation and institutions governing the Iranian economy are scrutinized. It is concluded that according to the theories emerged in the sphere of capitalism and the institutions and structures formed within the framework of western economy and the behaviors created whatsoever, substantially differs from that of Iran's economy and can not be utilised, whether in policy making or even the analysis of Iran's economic conditions.