5 reasons for double-digit inflation in Iran’s economy / the country’s economic policies should be production-oriented

In an interview with the economic reporter of Fars News Agency, Kamran Rahimi said, referring to the solutions to realize the slogan of 1402: Production has been one of the most important issues that the leader of the revolution has paid attention to in the past years, and this year, the growth of production along with curbing inflation are the most important issues. have introduced the economy of the country.

Referring to the story of inflation in Iran’s economy, he continued: Iran’s economy has been among the countries with high and continuous inflation in the last 50 years. In the last five years, the average inflation has increased twice and reached about 40%.

This economic expert stated that the high inflation in the country shows that we have not been able to control and cure the roots of inflation during this period, he emphasized: government budget deficit, imbalance in the balance sheets of banks, excessive increase in exchange rate, imported inflation and low growth and shortage Supply has been one of the most important causes of inflation in the country’s economy.

The head of Shahid Shamsipour College added: “A separate solution should be provided for each of the causes of inflation, but if we want to mention it on a case-by-case basis, we should say that the reform of the budgeting system in the country, which has been repeatedly mentioned by the leadership, is the most important measure to curb it. It is inflation.

This university professor stated: Increasing the share of taxes in the government’s revenues, solving the problem of imbalance in the banks’ balance sheets and reducing their corporate ownership are other measures that the government can implement with appropriate measures and in this way, prevent the creation of money by the banking system.

Referring to the import of goods that have domestic equivalents in the country, Rahimi added: the import of consumer goods, especially goods that have domestic equivalents, in addition to affecting domestic production, imposes inflation on the country in terms of exchange rate, which with policies in This field can be controlled.

He added: Researches show that the lack of production growth in the last 10 years was due to high inflation in the country. The increase in production in the country depends on the necessary reforms for the development of the private sector and the strengthening of productivity in the Iranian economy. That is, for the growth of production, both inflation in the country must be curbed and the country’s economic structures must move towards production-oriented policies instead of distribution policies.

This economic expert continued by stating the effect of inflation on production growth: an economy that witnesses high inflation loses its economic stability and predictability, and this issue also makes any investment, whether domestic or domestic, unwilling to invest in the sector. No production.

Rahimi emphasized: To solve this issue, the structure of attracting domestic and foreign investment must be modified, and in the next stage, economic policies to prevent the flight of capital from Iran’s economy should be included in the government’s agenda.

Emphasizing that if we are looking for production growth, the country’s economy must be cleared of inflation, this university professor added: “In order to curb inflation and production growth, the government must hand over economic affairs to the people and the private sector so that production growth can be realized in practice.” to be Production growth requires trust in the private sector and attracting public capital and people.

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