the importance of a stable macroeconomic environment

macroeconomic stabilitv is a major prerequisite fo r real economic growth. in th is study in order to allalyse tile empirical relation ship between macroeconomic instability and per capita real growth, a regression model has been specifi ed for tile iranian economy . in this equation , lour variables including hudget deficit as a ratio to gdp. intlation rate , percenltlge change in tile rea! exchange rate. and thestandard deviation of percentage chone in the term s of trad e have been used as proxies for macroeconomic instability. the equation lias been estimated by ols technique using annual data of the iranian economy .for 1342- 77.0ur findings point out that macroeconomic instability in lran is a serious obstacle to economic growth . securing macroeconomic stability requires a mor' effective macroccononuc management. pursuit of sound macroeconomic policies and greater fiscal discipli e