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:: year 8, Issue 25 (autumn 2015) ::
JMBR 2015, 8(25): 379-399 Back to browse issues page
Inflation and Economic Reforms for Controlling It: National Currency Reform Approach
Mohsen Mehrara, Ebrahim Alinejad mehrabani, Mehdi Khandan *1
Abstract:   (2130 Views)

Double-digit inflation over the past decades is one of the main problems in Iran's economy. Economic policy has not been able to resolve this issue and control inflation. Continuing high inflation and devaluation of the Iranian Rial bring up the national currency reform debate (removing zeros from the national currency). This study uses the experiences of other countries with similar experiences, in order to evaluate such a reform in Iranian economy. The sample used here includes 61 currency reforms in 48 country. According to theoretical studies, 8 effective variables in controlling inflation have been introduced. Changes in these variables are measured by using the ordered probit model. The Results show that the proposed reform package that includes five economic reforms in order of importance are: 1. Reducing the government deficit, 2. Increasing central bank independence, 3. Reducing net debt to the banking system, 4. Reducing the exchange rate and 5. Higher GDP growth rates. Another important result is that these reforms will reduce inflation with a delay.

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Type of Study: Empirical Study |
Received: 2015/01/8 | Accepted: 2016/08/23 | Published: 2016/09/21
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year 8, Issue 25 (autumn 2015) Back to browse issues page
فصلنامه پژوهش‌های پولی-بانکی Journal of Monetary & Banking Research
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