Domestic Economy

Turbulence in Iranian Markets Explained

Turbulence in Iranian Markets Explained
Turbulence in Iranian Markets Explained

Rising public interest in the stock market is good news for any economy, as it signals an improvement in production through market dynamics. However, in Iran, every time people turn to the stock market, a new wave of recession siphons off their money. 
What are the reasons behind the turmoil in Iranian markets? Why are the five main markets facing constant volatility and turbulence? At present, the policymaker is trying to control prices in different markets despite the high growth of liquidity beyond that of production. This was stated by Mohammad Reza Monjazab, an economic expert, in a write-up for the Persian daily Ta’adol. A translation of the text follows: 
Contrary to what the policymaker believes, ungovernable markets have strange price growths. The flow of liquidity is like the flow of water that enters several containers with the same pressure from above. If we make inflow outlet narrower, or block it temporarily, less water will enter, or it will not enter temporarily. However, water will enter the containers evenly and they will show the same level of water. 


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