Domestic Economy

A Hypersensitive Economy

A Hypersensitive Economy
A Hypersensitive Economy

Iran’s economy has become hypersensitive, reacting suddenly and sharply to developments and events. This hypersensitivity was built up over 40 years [since the 1979 Islamic Revolution], imposing huge and irreparable losses on economic players. This was stated by Sohrab Delangizan, an economist, in an article for the Persian economic daily Donya-e-Eqtesad. A translation of the text follows:
The Iranian government, as the main player in the economy, has practically occupied all the decision-making realms of the private sector such as pricing, marketing, distribution, imports, exports, securing loans, as well as starting and closing businesses. By taking decisions that are not in accord with economic conditions, the government has cleared the deck for crisis. 
Complications regarding economic relations with the world have adversely affected the private sector’s economy. A steep rise in the value of the dollar, the increase in money supply as a result of flawed banking rate of 38% while inflation is 50%, along with destabilizing conditions and mistrust in making any investment that has disrupted production, are all sensitizing factors of Iran’s economy. 


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