Purpose of this article is to review the effect of volume of money (M_1) and volume of liquidity (M_2) on the prices of agricultural products and also to determine the causal relationship between these variables in the Iran’s economy. For this purpose, time series data from 1990 to 2010 is used. The results of the estimated models appeared that M_1 and M_2 have positive and significance impact on prices of agricultural products. Also, the finding of research indicate that there is a Granger causality from M_1 and M_2 to prices of agricultural products and from prices of agricultural products to M_1.
