Stagflation is considered a disaster in the economy of a country and can have irreparable economic, political, and social adverse effects. In the third world countries, this phenomenon is more prevalent and due to the existing defective economic structures. In Iran, stagflation has existed since long ago and has been left untackled. The present research aims to explore the role of the aforementioned factors in Iran’s stagflation from 1984 to 2017 by employing an institutional approach. Therefore, this study sought to investigate the effects of social, political, economic, and cultural institutions on economic problems, namely stagflation. The obtained results of logistic regression indicated that there was a significant positive relationship between corruption and stagflation. On the other hand, the rule of law could negatively affect stagflation. These findings suggest the establishment of severe preventive rules which can discourage violators from committing the crime.

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