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Instability of prices in the housing market is one of the problems that Iran has been faced with in recent years. It is in a way that in one period there has been a considerable increase in housing price and in another period reduction of prices or relatively high and comprehensive stability has been dominant on the housing price and thus considerable changes have been appeared in the housing sector and finally in the whole economy. the main research question is proposed in this way: what is the effect of financial debts on price stability in the supply of housing ? In this study, therefore, was to investigate the effects of financial debts on stability or instability of prices in the supply of housing. Effects of government budget deficit on price stability in the supply of housing were studied using VARX model, the related variables and data related to time period 1992-2012. The results showed that government budget deficit in shortterm has no effect on house price fluctuations in Mazandaran province but it is effective in long-term. Shocks resulted from changes of housing price contain a major portion of house price fluctuations.

Assessment of Government Budget Deficit and Financial and Monetary Policy on Supply of Housing in Iran (Case Study: Mazandaran Province)