Majlis Research Center, the powerful arm of parliament, has issued a warning about the next wave of inflationary pressure as a direct consequence of the exploding liquidity.
A new MRC report says the unprecedented increase in money supply in recent years, the steep fluctuations in the foreign exchange market plus jumps in consumer prices pose a severe challenge. For this and other reasons controlling liquidity, with the aim of curbing inflation, deserves high priority.
Liquidity jumped from 5 quadrillion rials ($44.6 billion) in mid-2013 and tripled to 16.7 quadrillion rials ($149.1 billion) by the end of Sept.
December 28, 2018 19:10
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MRC Offers Solutions to Avert Future Inflationary Shock
The Majlis report warns that if the current composition in liquidity reverses, i.e. the proportion of money overtakes near money, and liquidity circulation gathers speed “runaway” inflation would follow, whose signs were visible in H1
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