The impact of economic instability on the Iranian stock market with an emphasis on the EPU index - the uncertainty of economic policies.

Governments play a colorful role in the capital market as a major observer and policymaker in determining the factors affecting stock returns. The higher the level of government involvement in the economy, is twofold, because these countries have irregular financial markets and changes in government policies can cause macroeconomic variables and the financial markets of these countries to face many problems. In recent years, the biggest impact, whether official or unofficial, on the capital market has been due to economic policies and related uncertainties. In this regard, in this study, the impact of economic policy uncertainty on the Iranian stock market during the period 1370 to 1399 has been investigated. For this purpose, data from Iran Statistics Center, Program and Budget Organization and Central Bank were used and data analysis was done using VAR vector autoregression model and EVIEWS software. There has been a significant uncertainty of economic policies on the Iranian stock market due to unexpected and unforeseen changes and political shocks during the period under review.