Shahid Beheshti University Journal of Economics and Modelling 2476-5775 2 7-8 2012 02 20 Investigating Determinants of Iran’s Inflation, with the Use of Bayesian Averaging Approach Investigating Determinants of Iran’s Inflation, with the Use of Bayesian Averaging Approach 27 58 57495 FA Mohammadali Cafaie Assistant Professor, Faculty of Economic Sciences, Shahid Beheshti University Hessameddin Ghassemi M.A. in Economics Journal Article 2012 06 17 The findings of research about determinants of inflation are different or even inconsistent, since each are based on the researcher’s point of view. In order not to face this problem, in this paper, the researchers use Bayesian averaging method. First, 350000 regression equations (based on data from 1353 to 87) were estimated and it was found that the growth rate of cash has a positive and significant effect on Iran’s inflation, and it is not just a monetary phenomenon. For confidence, the Bayesian averaging process was repeated twice with the change of the only pre-assumption of model’s size from 8 to 10 and then to 12 (1190000 equations was estimated totally) The findings of research about determinants of inflation are different or even inconsistent, since each are based on the researcher’s point of view. In order not to face this problem, in this paper, the researchers use Bayesian averaging method. First, 350000 regression equations (based on data from 1353 to 87) were estimated and it was found that the growth rate of cash has a positive and significant effect on Iran’s inflation, and it is not just a monetary phenomenon. For confidence, the Bayesian averaging process was repeated twice with the change of the only pre-assumption of model’s size from 8 to 10 and then to 12 (1190000 equations was estimated totally) https://ecoj.sbu.ac.ir/article_57495_0fda7cda39198664818ea8074e8810a0.pdf