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The aim of this paper is to consider the effects of monetary policy on production and prices through asset price channel (the housing price index) in Iran during 1368Q1 to 1387Q4. By Vector Error Correction (VEC) Model, the effect of monetary policy has been considered through this channel. In general, the results show that the debt of banks to the central bank as instruments of monetary policy through the housing price index, at least in the short run could increase the production level and decreases prices. Thus central bank with given facilities to banks can directly and through the housing price index strengthen production level and control prices in the short run. Also we found that shock of the required reserve ratio in general, directly affects production levels and don’t have any effect on production level and prices through the housing price index. Therefore, in using of these tool as instruments of monetary policy, the housing price index channel in monetary transmission policy, has a little effect and only on the production.

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The unequal allocation of economic resources, or other resources of wealth, regarding to the efficiency among the factors of production, is considered as one of the most important condition of optimal resource allocation in the market system. In other words, the market mechanism in the process of allocating resources among the factors of production rewards to the resources with higher returns. So, the article’s main question is whether the unequal distribution of votes similar to the unequal distribution of money, can be applied in the process of the optimal allocation of citizens' benefits in the democracy system? The answer of this question has been given by the monetary model which is similar to the democracy, using the concept of Anthony Downs’s (1957) rational voter hypothesis, the idea of Paul Samuelson's (1958) monetary economic model, the microeconomic theory of consumption and just one of the major components of the market –the unequal distribution of money–. Using the designed model, we can survey several statuses, Such as: vote exchange possibility (similar to the barter economy) and weighting of votes. The article’s results show that the social contract possibility for exchange and the ability to save money causes to change of the shape and nature of the money from public goods to private goods and the interest rate creation. In this situation, one of the important findings of Samuelson model of monetary is appeared in the space of voting theory. One of the contributions of the monetary model of Samuelson is that one of the origins of the monetary interest rate is population growth. The other results show that the weighting of buyers in the monetary model design under conditions can be led to more efficient choices and social welfare increase ultimately. KEYWORDS: Democracy, Market, Political Market, Money, the Weighting of Votes, Downs’s Rational Voter Hypothesis, Samuelson's Monetary Economic Model.

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The main objective of this study is to investigate the effects of oil shocks on GDP, prices level, money and exchange rates in Iran by using the structural vector error correction (SVEC) approach model covering the period 1980Q2-2010Q1. The findings of this study reveal that positive shock in oil real price has significant and positive effect on the real GDP in the short, medium and long. The impact of oil price shocks on domestic prices in the short, medium and long term is negative and significant, such as creating a positive shock to the real price of crude oil, reduce the domestic price. In addition, a positive shock to the real price of crude oil has the negative effect of the exchange rate in the short, medium and long term. However, the impact of oil price shock on the real exchange rate is permanent. Imports also will increase, due to the increase in wealth and demand for intermediate products. On the other hand, a positive shock to the real residual money in the short run cause to immediate increases in real out put.