Editorial

Authors

• Mahmoud Eisavi ¹
• Vahhab Ghelich ²

¹ Assistant Professor, Allameh Tabataba`i University

² PhD student in Economics, Faculty of Economic, Allameh Tabataba`i University

Abstract

Having looked at the economic history of Iran indicates that the budget deficit and it's financing has proved to be one of the important problems of governments. Acknowledging the securities requirements with purpose of Effectiveness in financing budget deficit through the IS-LM model constitutes the first part of this research. Findings of the first part denote that stability of budget deficit has recorded a condition which output has been increased.
"Can sukuk contribute to this stable condition?" is the second question of the paper. Financial deepening, diminishing of symmetric information and little capital aggregation are characteristics of sukuk which give positive answer to this question.
This paper proposes applying sukuk for budget deficit financing in two models: Ijarah sukuk and Istisna sukuk. The results denote that these securities can decrease the government's budget deficit.

Keywords

• Sukuk
• Budget Deficit
• Government
• Ijarah
• Istisna