Different variables with different functions are used in an analysis of monetary and financial policies and their roles in the macroeconomic stability of a country. Considering the fact that Iran is highly dependent on oil reve-nues, any alteration in these revenues will result in an imbalance of macroeconomic stability in which case mone-tary and financial policies can contribute to the economic stability by increasing oil revenues. Results from the study indicate that monetary and financial policies have a significant relationship with oil revenues where any changes in oil revenues result in changing of government budget, quantity of money in circulation and currency rate which could in return lead to cessation of economic growth.
