Domestic Economy

An Economic Mistake in the Making

The independence of central banks, necessary for the realization of a sustainable single-digit inflation, is one of the most basic principles for controlling inflation and creating stability; after all, economic stability is one of the key conditions for the growth and development of the country, said economist Seyed Ali Madanizadeh in an article for the Persian daily Donya-e-Eqtesad. 
A translation of the text follows:  
As the country’s history of the past 50 years shows, after the approval of the Monetary and Banking Act in 1972-73 and in the absence of the independence of the Central Bank of Iran, Iranian governments advanced their agendas regardless of whether they lead to economic growth or are used to deliver populist promises by tapping into CBI resources. As a result, the increase in money supply imposed inflation on future governments.


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