Islamic Republic of Iran: Selected Issues

International Monetary Fund

No 2008/285, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues Paper on Iran reviews that monetary factors are the main determinants of inflation in the country. Government spending out of oil revenues leads to large liquidity injections that the central bank accommodates owing to its efforts to prevent a significant nominal appreciation of the rial and the lack of effective sterilization instruments. The growing discontent with inflation, however, has compelled policymakers to focus on this issue, bringing it to the forefront of the policy agenda.

Keywords: ISCR; CR; Iran; price; Phillips curve; inflation expectation; damage cost; root mean squared error; OSF operation; stabilization objective; OSF deposit; budget classification framework; OSF financing; transition cost; border price; U.S. dollar; fuel input price; Oil prices; Energy prices; Inflation; Fuel prices; Public expenditure review; Global (search for similar items in EconPapers)
Pages: 47
Date: 2008-08-14
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Citations: View citations in EconPapers (2)

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