The main goal of this research is studying the causative & effect of deficit budget, money offering and inflation rate in Iran during 1360-1390. The results in long time indicates that the bulk of money has had positive effect & meaning on inflation rate during that time and alteration of budget deficit of the government has also positive effect on inflation but by meaningless impress, in other words this alteration has no independent impress from other alterations and specially form the bulk of money on inflation. Also on the basis of the results of Grenjer causative test, there is a direct relationship or indirect among all the alterations in the model. In regard with the results, money offering is one impressive alteration on inflation and continued increasing in offering the money leads to increasing of inflation. In other hand there is a causative relationship between budget deficit and inflation. Increasing the inflation causes increasing the expenditures and decreasing the revenues therefore by considering that high percentage of budget deficit in Iran to be supplied by central bank that has expansible effect on the total demand & price levels. It is necessary that budget deficit to be supplied from other ways except receiving the loan from bank system such as getting loan from people and selling governmental valuable papers.
