This paper studies the usefulness of the P*-model in the analysis of the behaviour of prices in Iranian economy. The P*-model is based on the Quantity of Theory of Money. This model believes that the price level tends to move towards the equilibrium price level. The P* model uses price gap to...

During recent years, regional economic integration has played a crucial role in the conduction of trade policies. Economic integration relies upon the concept of joint commercial policies within regions by which countries enable to promote their trade potentials. Basically, a new type of...