Deciphering Iran's inflation with Nobel Prize-winning economic theory.
▫ Taymor Rahmani, economist and faculty member at the University of Tehran, at a meeting held at the Faculty of Economics of the University of Tehran, which examined the ideas of Robert Hall and Michael Woodford, winners of the 2026 Nobel Prize in Economics, deals with one of the most important macroeconomic questions: what determines the general price level?
▫ From the quantitative money theory to the financial theory for determining the price level, Rahmani explains how Michael Woodford expanded the economists' perception of the source of inflation by introducing government budget conditions under equilibrium conditions. He goes on to relate this theoretical framework to the Iranian economy, emphasizing the role of government spending directives and budget policies in creating chronic inflation.