The stimulus package introduced by the government is the latest attempt to combat the ghostly monster of stagflation.
The stimulus package introduced by the government is the latest attempt to combat the ghostly monster of stagflation. The vicious marriage of recession and inflation led to birth of a monstrous offspring which handicapped the economy of Iran over the past years. The economic team of the government including the senior economic adviser of the president joined hands to find the most suitable remedy for this melancholy. They identified some core and peripheral factors affecting economic activities and arrived at a consensus on four locomotive sectors. Non-oil exports, real estate, oil, gas, and petrochemical industry, as well as energy conservation constitute the four pillars of a package which aims at weakening and destroying the vicious combination.
Meanwhile, the financial sector and proper allocation of resources prove their significance once more. The fact that banks have been diverted from their real function and got involved in side activities necessitates an overhaul in banking and financial system; an attempt which has already begun. The other important factor, that is ease of doing business, has also regained importance and officials are orienting their attention to it. It is hoped that all initiatives result in fruition this time as it seems that the authorities are moving in the right path of first diagnosis and then treatment.