Assess Financial Institutions in order to Targeted Liquidity Existing in Society for Reduce Inflation and Stimulate Growth in the Industry with Use the AHP Method

Authors
Hassan Rangriz
Hooman Pashootanizadeh
Kharazmi University
10.18869/acadpub.jemr.5.19.215
Abstract
Extension informal and unorganized money and credit markets in Iran, is much broader than the official money markets. This problem causes a large difference between formal and informal money market loans interest rate in Iran. The large size of the informal market liquidity that can’t be guided by the monetary policies of central bank's and fiscal policies could help to increase the inflation rate in the country.

In this paper, we use the AHP method for to explore this topic that fits with the existing monetary and financial institutions, which sector is more appropriate for investment and targeted liquidity existing in society, in order to reduce inflation and stimulate growth in the industry. The results revealed the stock exchange is the best financial and investments institutions in order to reduce the inflation that caused by the high liquidity of the present.
Keywords
Stagflation
Inflation
Risk management
Capital Market Risk