Iran’s Banking and Monetary Problems

Naghshineh-Pour, Amir (2009): Iran’s Banking and Monetary Problems.

Abstract

Iran has had many self-imposed economic crises. Many of which relate to the poorly managed banking system as well as flawed monetary and fiscal policy. Inefficiency of the banking-monetary system in Iran is a well known fact. A complete overhaul of the current system should be one of the essential priorities of any economic reformation and development. The banking-monetary system of any country has a key role in its economic efficiency and strength, price stability, production, and economic growth. The main functions of a banking-monetary system are to provide fiscal resources, to prepare ground for optimal allocation of capital in the economy, to distribute the wealth in the best possible way, and to ease economic development. This is particularly important in Iran because capital markets are underdeveloped.

• Item Type: MPRA Paper
• Language: English
• Keywords: Iran; Banking; Monetary Policy; Fiscal Policy
• Subjects: F - International Economics > F0 - General > F00 - General; H - Public Economics > H0 - General

References

1. The Economist (edited by Simon Cox) “Economics: Making Sense of the Modern Economy,” 2nd edition, 2006.

2. Donya-e Eghtesad daily newspaper, 7th year, Number 1797, Thursday May 14th, 2009.

3. Donya-e Eghtesad daily newspaper, 7th year, Number 1799, Sunday May 17th, 2009.

4. Naghshineh-Pour, Amir “A Review and Analysis of Iran’s Current Economic Status”, October 2008, http://www.payvand.com/news/08/oct/1285.html.

5. Donya-e Eghtesad daily newspaper, 6th year, Number 1678, Thursday November 27th, 2008.

6. Naghshineh-Pour, Amir “Financial Crisis, Iranian-Style”, February 2009, http://www.payvand.com/news/09/feb/1321.html.