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“Inflation” the Worst Cancer for Economy |
The current inflation is
like a termite slowly and noiselessly eating the basic pillars of
the economy and the society.
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Probably the most malignant cancer of any economy is “inflation”; it is a
difficult disease that has many complications and its worst feature is that
the doctor is not interested in treating the patient because it has benefits
for him.
By creating inflation, which is caused by monetary policies, the government
covers its inability to balance the budget and provide resources, and
compensates its deficits and creates inflation with oppressive and
unauthorized taxation. The only institution that can curb and control
inflation is itself, so it is natural if inflation is not treated. In the
past 44 years, only four years of single-digit inflation have been seen in
Iran’s economy. That is not due to a balanced budget and the control of a
Central Bank independent of the monetary policy, which has been achieved as
a result of creating an atmosphere of hope in the society and opening the
oil arteries and suppressing the exchange rate with the help of
petrodollars.
The year 1400 (2021 – 2022) ended with over 40% inflation and the outlook
for 1401 does not show a better figure than this. Previously, the
International Monetary Fund had predicted Iran’s inflation rate at 32.3% for
1401 and 27.5% for 1402, which is probably an almost optimistic assumption
of a possible agreement between Iran and the West, or at least reducing the
pressure of sanctions in this regard.
The prediction has been effective. But now that we have entered the third
half of the third month of the year, the status of the agreement and revival
of the JCPOA has become extremely unclear, and the European countries, along
with the United States, have again brought the Iran nuclear case to the
International Atomic Energy Agency’s Board of Governors. The things that
make the agreement more out of reach and add to the sufferings of Iran’s
economy also fuel the inflationary expectations in the society.
All these events are taking place while the shoulders of households,
companies and the entire economy of Iran are bent under the pressure of
inflation and there is no strength left to bear more. These last funds
should be spent on helping to reduce the burden of this pressure, which can
be achieved by agreeing and removing the embargo as an external factor and
reforming the budget internally.
The current inflation is like a termite slowly and noiselessly eating the
basic pillars of the economy and the society. The continuation of inflation
is like moving towards the destruction of these foundations and the collapse
of the economy; the calamities that have befallen nations like Venezuela and
the sufferings the people of this country have gone through are before the
eyes of our policy makers. Inflation is now a strong wind that has the power
to become a destructive storm that uproots and carries away everything. |
