Tyranny of numbers

Inflation and energy price reform in Iran

Posted in General, Inequality, Inflation, Sanctions, Subsidy reform by Djavad on February 19, 2014

The dominant view of the high inflation of the last three years blames it on the subsidy reform. (The latest high profile assertion to this effect came from a piece by Hashem Pesaran and Hadi Salehi Esfahani published by the Fars News Agency, to which Mohammad Ali Farzin, the former head of the subsidy reform program,  responded by claming that only 10% of the inflation was due to the subsidy reform).  Were it not for the fact that blaming energy prices for the destructive inflation of the last three years casts a long shadow over future policy on energy prices, the mere fact that it is wrong would not prompt me to bore the readers of this blog with yet another post on inflation. (more…)

Is it time to declare the war on Iran’s inflation over?

Posted in General, Inflation, Macroeconomy by Djavad on January 27, 2014

This is an update on my last post on inflation, which continues to slow down, and a call for letting inflation drop from the top position on the new government’s list of priorities, to be replaced, hopefully, with fighting unemployment. (more…)