Morteza Sameti - CEO of RRC, Professor of Economics Department, Isfahan University
Shirin Shirali - M.A. of Economic Development and Planning
Iman Asgari - M.A. of Industrial Engineering

Capital market is bridge to transfer economic units saving to investment ones which need them. Moreover, realized mechanisms in this market accelerate economicgrowth via savings and investment volume. Money market plays an essential role in providing liquidity of economic enterprises to achieve economic growth. This paperstudies this bilateral relation and role of money and capital markets on economic growth especially private section based on seasonal data on 1379-1389 byAutoregressive approach. Findings show that exchange TEPIX rate, banking deposits have positive effect on private sector economic growth while inflation has negativeeffect. Also the results of Johansen cointegration test method indicate that there is long-run relation among variables. Shocks survey leads to model convergence and theVECM coefficients indicates adjustment of short-run to long-run lasts about three and half periods.

Money Market, Capital Market, Economic Growth, Vector Autoregressive Model