Stagflation, A Major Challenge

Tehran, Aug 17, IRNA - President Hassan Rouhani’s economic team held a conference to announce its policies for combating recession. A year after assuming office, the government believes Iran’s economic problems are rooted in “stagflation”. The Persian daily Ettela’at wrote Saturday that the ominous phenomenon has caused a major challenge for the administration. Investors have concluded that production is worthless, which concept seriously threatens the country’s economy, Iran Daily quoted the paper in its Press Panorama column. Stagflation has prompted investors to focus their efforts on capital flow rather than production, it added. ˈSuch a stance has bred widespread irregularities and corruption, which reached its climax during the tenure of former president Mahmoud Ahmadinejad.ˈ Rent-seeking, money-laundering, embezzlement, arrears and the tangled web of banking system are chronic topics of debate these days, the daily noted. The paper further criticized lack of clarity in economic activities, stressing, ˈIf the administration is determined to remove economic hurdles, it should spare no efforts to cooperate with the legislative body to eliminate obstacles threatening the country’s economy instead of holding conferences.ˈ/end