Dynamics of Inflation and Economic Fragility in Modern Iran" by Dr. S. A. Hamed Hosseini

Описание: The text "Dynamics of Inflation and Economic Fragility in Modern Iran" by Dr. S. A. Hamed Hosseini, an Iranian-Australian economic sociologist, provides a comprehensive analysis of inflation as a complex phenomenon rooted in structural, political, and class-based issues, rather than a purely monetary one. The author argues that Iran currently suffers from a combination of three types of inflation: demand-pull, cost-push, and currency-related inflation, which have reinforced one another in recent years.
Key insights from the source include:
• The "Brokerage" Economy: The author highlights how neoliberal "structural adjustment" policies and haphazard privatisation have transformed the economy into a "brokerage-based" (Dalali) system. Instead of supporting a productive sector, capital is funneled into speculative activities like land, housing, and currency, often managed by "shadow banks" and elite monopolies.
• Structural Inequality: Inflation is exacerbated by extreme class differences. In an economy where wealth is concentrated, surplus liquidity (money) is used by elites to hoard goods or export capital, while the working class sees their purchasing power collapse.
• The Role of Sanctions: Sanctions are described as a "trigger" that causes a "house of cards" economy to tremble. While they disrupt trade and currency value, their impact is intensified by internal fragility, such as the government’s lack of economic planning and its dependence on raw material exports.
• The Threat of Hyperinflation: Hosseini warns that unless the structural roots—such as rent-seeking, banking irregularities, and the lack of social justice—are addressed, the risk of hyperinflation remains high.• Proposed Solutions: The author advocates for a fundamental shift toward a "green economy" and renewable energy to create jobs. He suggests replacing top-down management with democratic cooperatives (inspired by the Mondragon model) and restoring universal public services, such as free education and social security


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