Domestic Economy

‘Financial Imbalance’ Main Economic Challenge

‘Financial Imbalance’ Main Economic Challenge
‘Financial Imbalance’ Main Economic Challenge

Tax reform, overhaul of banking system and control over economic indicators, especially the soaring inflation, are among pressing issues hampering the Iranian economy.
Nonetheless, economist Mohammad Vaez believes that the most important problem facing the next government is “financial imbalance”.
According to the economist, one of the problems causing financial imbalance is the oil-based economy, Fars News Agency reported. 
“One of the effects of the oil-based economy is the emergence of chronic and high inflation,” he said, stressing that this is the result of a disproportionate increase in money supply. 
Vaez explained that the high growth of money supply creates all kinds of financial imbalances, the most important manifestation of which is evident in the government budget.

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