Inflation, the historical dilemma
Rapporteur- Farbod Dehghani: the economy is spending one of the worst times in its history. This situation is not the fault of the person or certain state, but is the result of decades of false policy.
The current situation in economics is defined as stagflation. Somehow the worst situation which can occur for an economy.
In stagflation, communities are faced with increasing rates and the sharp drop in demand. As a result, it is not policy makers can inhibit contraction-expansion policy, not the policy tightening, inflation go to war.
As a result, we face a situation that is due to inflation, purchasing power has gone down and because of the recession.
The current government received the country with 40% inflation. Of course, in that period, priority was to curb inflation. There is no doubt that the performance of the Ministry of Economy in giant containment of inflation is laudable, but now, we are at a decisive crossroads.
However, given the current conditions in the economy and the growth of the exchange rate inflation is inevitable. Again, I emphasize beginning of an upward trend in inflation does not mean that inflation is continuous. Shortly growth and inflation may have stopped the process again.
We should not forget as one illness more difficult is, the cure is also more painful, but it is important now that the sick economy, find it’s professional surgeon, and all of us must wait and endure hardships, to restore health, once and forever.