The need to realize the economic growth of non-inflationary rains/the supply side of the economy should be considered by policy makers

Maisham Khosravi, in an interview with the economic reporter of Fars news agency, said about the way to realize the motto of the year, i.e. growth along with curbing inflation, which was determined by the leader of the revolution: the most important part of the motto of the year 1402 is the combination of these two parts. It means that we can realize the growth of the mentioned production along with curbing the inflation at the same time.

He continued: This slogan, in practice, firstly defines and secondly limits the tools that should be used to stimulate production. In other words, the path that Hazrat Agha is considering for the growth of production is the non-inflationary path.

Referring to the non-inflationary methods of production growth, this economic expert emphasized: mainly these methods should be other than the methods that rely on the creation of bank money. It does not mean that the creation of bank money is not used for the growth of production, but stimulating production mainly by paying facilities cannot be classified as non-inflationary solutions.

Expressing some non-inflationary solutions for production growth, Khosravi added: We must look for solutions such as increasing the productivity of labor and capital for production growth and put the main focus on this model of non-inflationary solutions.

In response to the question of how non-inflationary solutions for production growth should be realized, this economic expert stated: Generally, any solution that stimulates supply can be appropriate. Because the solutions that are based on creating money are mainly focused on demand.

Referring to the government’s tax policies, he continued: There should be a model of supporting the producer that reduces the direct costs of production, it can be useful in the field of supporting production. If taxes are taken from the producer, or social security insurance premiums are taken from him, or other taxes that hinder production, we should ease them in order to improve economic growth. Or if we can do things on the property rights that the producer will process their claims faster, these are the things that will stimulate the supply side of the economy.

Khosravi emphasized: Production growth must be without inflationary dimensions. We should seek to create economic growth without increasing inflation, but stimulating economic growth is not without inflationary effects. For example, if you approve that a certain amount of facilities will be paid to the production sector, it will not be without inflationary dimensions. It is true that it improves economic growth, but it also has inflation.

This economic expert added: We should look for a set of solutions that will have a small impact on inflation in addition to production growth. The slogan of the year is a combination in which each component is important, but both issues as a combination are much more important for the politician.

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