The Genesis of Hyperinflation

It is of paramount importance for the government to tame inflation. So long as it fails in this key arena, all economic policies, including the so-called plan to “boost production” and “support the poor and middle class” go south, says Vahid Shaqaqi-Shahri, an economist and university professor, in an article in the Persian-language newspaper Ta’adol. Translation of the full text follows.
The Statistical Center of Iran says monthly inflation shattered all records in the third month of the current Iranian year (May 22-June 21) reaching 12.2% and 8.7% higher on the previous month.
Goals such as increasing production (pulling the country out of recession and improving production) don’t materialize in an economy grappling with hyperinflation of 50% and 60%. Besides, welfare policies also fall by the wayside and people’s purchasing power takes a drubbing. It is my strong conviction that the government must first concentrate on fighting  inflation.