Inflation and Inflation Uncertainty in Iran

Abstract

Ab s tract: In this paper, we cons truct a time s eries of monthly inflation uncertainty in Iran from 1990 to 2008 us ing EGA RCH model and inves tigate t h e lin k b e tween inflation and inflation uncertainty us ing Granger c aus ality tes t. The res ults indicate that inflation leads to higher inflation uncertainty in Iran but reverse relationshi p does not si gnificant.