New Evidence of the Effect of Oil Revenues, Exchange Rates and Money Quantile ARDL Approach: Supply on CPI and PPI

The effect of oil revenue, exchange rate, and m2 on the cpi andppi, over time of 2005:1-2022:1, was investigated in iran withqardl method. the results showed that in the short run,variables had an asymmetric effect on the cpi and the ppi. oilrevenues, in the long run, reached from the quantile of 0.05 to themedian. the impact of the variable on the inflation increased, andthen its impact decreased. also, in the long run, the effect of theincrease on the ppi is greater than the consumer price index. inthe long run, the effect of exchange rates on the cpi and the ppiwas nonlinear while being symmetric. it changed from thequantile of 0.2 to 0.8 and its effect proportionally increased andthen decreased. moreover, regarding m2, the results showed thatthe effect of this variable on the cpi and the ppi was asymmetric,in the short run. it changed from the middle quantile to thequantile of 0.9, and its effect was positive and significant. in thelong run, the results confirmed its positive effect on inflation inall quantiles, although its effect on the ppi was asymmetric.