Gov’t-CBI Interaction Needs Reset

Interaction between the government and central bank must be restructured to be able to tame inflation and reach sustainable and decent economic growth. 
“This [among other things] means the government should avoid borrowing from the CBI,” Ali Salehabadi, the governor of the Central Bank of Iran told state TV late on Sunday. 
Budget deficits push up money supply along with inflation. Recent CBI data show broad money supply increased to 44,270 trillion rials ($167 billion) by Dec. 21. It was 41.4% higher on an annualized basis.