Coupon is the systematic suppression of inflation in a small area while prices of goods move in an interconnected space. Practical strategies should be taken to tackle the rise in prices of goods and services in all sectors, if we are keen on curbing or easing inflation.
This was stated by Morteza Afqah, an economist and university professor, in a write-up for the Persian-language daily Ta’adol. A translation of the text follows:
Electronic coupons are slated to replace cash subsidies by the second half of the current fiscal year [starting Sept. 22]. Coupons are to be issued for some food items (probably those whose subsidies were removed in May plus bread). But the success of this policy depends on two key issues: first, coupons need to cover a wide range of goods and not just the ones whose prices were liberalized. Second, coupons alone are not sufficient.
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