Controlling Money Supply Key to Taming Inflation in Iran
The article explores the causes of inflation in Iran and how persistent it is. By analyzing different inflation theories, the researchers found that controlling the money supply is crucial for managing inflation. They also discovered that the exchange rate of Rial, budget deficits, oil prices, and real GDP all play a role in inflation levels. The study shows that inflation persistence is influenced by structural changes, but permanent shocks eventually fade away. Overall, the findings suggest that monetary policies can help control inflation, but there is still room for improvement.