The simultaneous necessity of production growth and inflation control to prevent stagnation

According to Fars News Agency, citing the Public Relations Information Center Program and budget organizationMohammad Farshkaran, head of the East Azerbaijan Management and Planning Organization, stated that inflation is actually a kind of hidden tax that benefits certain classes and harms the majority of the people, stating that inflation and recession are the structural problems of Iran’s economy.

Referring to the slogan of the year, he pointed out the solutions to curb inflation and production growth and said: “It is a very important issue to determine the production capacity.” If the production is able to respond to the needs of its domestic and international markets and to stabilize the monetary and financial base with foreign exchange and domestic capital circulation, the value of the national currency will increase. When the value of money is strengthened, the ability and purchasing power of the members of the society will increase, and while controlling inflation, production can come out of stagnation.

Farshkaran considered the increase in production in different economic sectors to be important for curbing inflation and increasing national income and said: whenever the economic growth or gross domestic product (GDP) of the country increases, the economic power and per capita income of the country is improved and the general level of prices decreases and to In other words, inflation is controlled.

The head of East Azerbaijan Management and Planning Organization, stating that the increase in the general level of prices follows a certain stickiness, continued: In order to control the prices towards a decrease, production growth must happen so that with the increase in the per capita income of the members of the society, the demand for goods and services will increase. Increase.

He considered contractionary policies in the sense of market control, monetary policies and targeting of banking facilities to be effective in curbing inflation, he added: If regional and global economic connections bring production capacity to the markets and become a currency, this currency will automatically contribute to economic growth and curb inflation. It will show its effect.

Farshkaran considered foreign exchange policies and stabilization of exchange rates necessary to curb psychological inflation and said: curbing and controlling inflation should be carried out in specific time frames, which requires strengthening the national currency, active presence in regional and global markets, and the cluster connection of small producers with large producers. , Is.

Emphasizing that curbing inflation and growth of production should be done simultaneously, he added: If we only consider curbing inflation and do not pay attention to the growth of production, the complication of stagnation will bother the country’s economy and lead to the aggravation of unemployment and social anomalies and increase Government expenses will be

At the same time, the head of the management and planning organization of East Azerbaijan stated: Of course, these reforms cannot be created only with slogans, but it is necessary to proceed with all diligence and take effective practical measures in the direction that the Supreme Leader has specified.

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