Will Iran’s Economy Collapse?

The protest came a day after demonstrators forced two major mobile-phone and electronics shopping centers in Tehran to close.

Bijan Khajehpour, Al-Monitor: Will Iran’s economy collapse?

Turbulent developments in the past few months on the foreign exchange and gold markets in Iran and the government’s failure to manage runaway prices has compelled some economists to start using the term “bubble economy.”

The interrelationship among various markets within the country’s economy was explained in a June 14 Al-Monitor piece. In this article, however, we will focus on the root causes and complexities of behaviors by economic players. Regardless of whether these acts are driven by economic, psychological or political factors, they are damaging to the economy as a whole and compound the government’s challenges in managing the economy. At the same time, it is clear that a continuation of the current conditions will increase the likelihood of an economic crisis with unprecedented social and political consequences. The current wave of strikes and demonstrations by traders and other economic actors is an example of how the problem will be amplified if the authorities do not develop proper responses.


WNU Editor: I doubt that the Iranian economy will collapse …. but hard times are definitely on the horizon for its citizens. And while some are speculating that this may lead to a revolution …. In Iran, revolution is starting in the bazaar (Michael Rubin, Washington Examiner), I doubt it. The theocracy that rules the country are firmly in control, and from what I have seen the Iranian Revolutionary Guards have not wavered in enforcing the mullahs rule.

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