Umm Al Masab Why can't inflation be removed from the equation of Iran's economic problems? Miriam Rahimi/ Publishing Company If inflation is considered simply as an increase in the price of goods and services, it may be possible to place it as a problem together with other economic problems; But if inflation affects other variables and simultaneously results from structural disruptions of the economy, such a separation is considered difficult. In this view, inflation at the same time, which is one of the results of economic performance, also affects the reform in other economic sectors. From this point of view, the main issue is not only the rate of price increase; It is necessary to see what the relationship is between inflation and investments, economic growth and the performance of various sectors in the economy. In addition to the macro consequences, inflation also disrupts the economic mechanisms at the micro level. One of the most important disturbances is the disruption of the relative price mechanism and the distortion of price signals. In an economy with high inflation, price increases that we see at the micro level are not necessarily a valid price signal. More precisely, the price changes under such conditions cannot correctly reflect the relative price changes. As a result, the mechanism that is supposed to transmit the necessary information through prices is affected by inflation and loses its function. Inflation should not be seen only as a monetary phenomenon and limited to the macroeconomic level. The question is why at the micro level, the manufacturer also faces inflation and can this phenomenon be attributed only to the monetary field? The answer is negative. Inflation shows that the government is facing problems in various fields, including in the government's financial field, and these problems spread from that financial field to the monetary field. If the government's financial governance problems spread to the monetary sphere, it is not possible to limit the analysis of inflation to that sphere where the increase in the general price level appears. Kamran Nedri says about the relationship between inflation and the performance of the government system: "The presence of inflation in a country shows that the government or the economic governance system of that country in general is acting inappropriately. This problem exists both in the financial and budgetary sphere as well as in the banking sphere and other sectors.