Hidden rent | The preferential exchange rate policy did not achieve any of its goals

Meysam Khosravi, an Iranian economics researcher, in an interview with Fars News Agency economic reporter, about the hidden rent of 4200 Tomans, said: The existence of 4200 Tomans in the country’s economic policies caused that in 1999, about 120 thousand billion Tomans of monetary base from these net assets Foreign central bank increase.

“Since the announcement of this policy, all the experts have been saying that it is wrong,” he said. The policy, it must be said, is that the preferential currency policy has not hit the target at all.

Explaining some of the disadvantages of this policy, he added: “Nobody thought about the effect that the preferred currency had on the growth of monetary variables at that time.”

Khosravi stated some of the consequences of reforming the preferred currency: One of the consequences of reforming this policy is that the prices of basic goods will increase. The price of commodities that take the preferred currency will have a price jump, though not as much as the difference between 4,200 and Nima, which is, say, 5-6 times. In fact, we will see a price jump, not inflation.

The Iranian economics researcher continued by stating supportive policies to replace the preferred currency: Experts who support commodity subsidies or credit cards to buy goods, say to make sure a family that does not consume basic goods, in terms of nutrition and protein intake And these things make sure that he consumes these goods and receives the necessities of normal life.

He emphasized: I am in favor of distributing subsidies in cash. Because the family has finally come to the conclusion that now the first need is to rent a house and does not want to consume a series of goods; What an insistence that we do not respect this choice. Second, when you make subsidies a commodity, you can not be sure that the household is consuming exactly the same commodity.

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