Inflation in Iran: A Fiscal Phenomenon (in Persian)

Ahmad Jafari Samimi

Management and Development Process Quarterly (٠صلنامه ٠رایند مدیریت و توسعه), 1992, vol. 6, issue 2, 18-34

Abstract: In general, it is not possible in macroecoomics to come up with a significant relationship between government budget deficit and inflation. However, as far as the lranian economy is concerned, it should be added that the increase in budget deficit has not brought about an increase in real supply of goods and services, and also almost all government budget deficit has been financed through the banking system which in turn has caused a higher inflation in the recent years. Therefore, we can refer to the lranian inflation as a "fiscal phonomenon". If so, then an appropriate fiscal policy coordinated with other policies such as monetary and exchange rate adjustment are needed to control it.

Date: 1992
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