Price Stability Crucial Precondition for Growth

Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei has named the new Iranian year (started March 21) as “Inflation Control and Production Growth”, which is expected to be at the forefront of all the decisions and efforts of the three branches of power this year. 
Theoretically, the realization of each of these goals in the short run and in an unbalanced economy requires special mechanism. The containment of inflation requires the application of contractionary economic policies while production growth requires the implementation of expansionary policies which, given the time-consuming process of production, leads to an increase in prices and inflation. This was stated by Hossein Bazmohammadi, an economic expert, in a write-up for the Persian daily Donya-e-Eqtesad. A translation of the text follows:
The use of different tools and mechanisms separates the short-term decision-making (legislative and executive branches) from the society’s long-term well-being, and highlights the choice between short-term popularity during an administration’s term in office and a reputable record.