The main objective of this thesis is to review and compare the effects of two ways of government financing, increasing the exchange rate and borrowing from the central bank, on macroeconomic variables, production and inflation. The simultaneous equations and 3sls estimation method are used. The results of the model estimation and its simulation using data among the years 1357 to 1388. Indicates that government financing through the increase of exchange rate results in production compared to borrowing from the central bank. The results obtained suggest that the government financing through the increase of exchange rate has more inflationary influence than borrowing from the central bank