Central Bank of Iran Inflation Policy Lacks Merit

Economists of all stripes have voiced strong reservations about central bank’s bold decision to set an inflation target of 22%. This, they say, is subject to conditions which if not realized would undermine public trust in the top regulator. 
In a statement on Tuesday, the CBI set the inflation target at 22% during the current fiscal year that ends in March 2021.  
Kamran Nadri said targeting inflation could be an effective instrument per se if the Central Bank of Iran “takes informed steps toward the target in tandem with  all the effective variables”. 
Failing to do so would “Undermine public trust in the monetary policymaker,” he was quoted as saying by the Persian-language economic weekly Tejarat Farda, a sister publication of the Financial Tribune.