The address of the defendant, Benzini
Dr. Taimur Rahmani
In the 1380s and during the years 1393 to 1396, when there were high growths of liquidity, but the inflation rate was not significant compared to it, many prominent figures of the Iranian economy in our friendly conversations pointed out that there was a relationship between liquidity growth and inflation. It is no longer valid and monetary theory should be forgotten. Now that I see those servers, I just remind you that Iran’s rich literature did not say irrelevantly that “chickens are counted at the end of autumn.”
The main culprit behind the increase in the price of gasoline and all prices is without any doubt the continuation of liquidity growth, and until we try and punish this main culprit, price increases and inflation will be our guests, and price jumps that we sometimes try to stabilize due to political considerations. Let’s keep it, it will surprise us and if a politician survives it, he will take the collar of another politician.
In fact, long before November 2018, by accepting the continuation of the high growth rate of liquidity, we all agreed that the jump in the price of gasoline would occur, just as we had accepted, the price of currency, housing, gold, meat, and rice would increase and suffer a shock. Of course, in any case, the main victim of this continued inflation and this sudden increase in prices such as the exchange rate and the price of gasoline are also the oppressed lower deciles of the society who have no protection against price shocks.
What has been said does not mean that the monetary policy maker should keep the growth of liquidity at a constant number every year, rather, the growth of liquidity should be low on average and proportionate to the needs of the economy, which at least in the last 30 years, this average should not be from about 7 to It was 8% higher. It is also necessary to mention that the control of liquidity growth is not such that the central bank closes a valve a little and the problem is solved. Liquidity growth will occur endogenously and especially affected by the imbalances in the economy, and without accepting the removal of those imbalances, the possibility of reducing the growth rate of liquidity and therefore reducing the inflation rate and therefore reducing the possibility of currency shocks, housing price shocks, gasoline price shocks, etc. There will be no
I appeal to all the economists, if they are worried about the crushing of the deprived, among whom I myself have risen and understand their pains more than any economist, to focus on the demand for the elimination of the imbalance in the economy and a noticeable reduction in the average growth of liquidity in order to Placement of temporary relief medicine in the form of artificial price control to relieve people’s sufferings, long-term treatment of price jumps and inflation have been recommended. I request the economists who are familiar with the basic principles of economics to demand from the decision-making system not to artificially control and keep prices stable.
The artificial control of prices takes everything that the disadvantaged earn drop by drop in a long time, and even more. Having grown up in the midst of poverty and deprivation, I beg you not to support any price controls so that the poor are not hit hard by price shocks. Feelings are one thing and rationality is another, and unfortunately the world of economic phenomena is not the world of feelings, and grieving for the deprived cannot solve a problem. We can only be relieved of the safety of the deprived when we prevent the formation of the basis for price jumps. It is only then that we can think about improving the situation of the deprived./Source: World Economy
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This post is written by Ssmh22