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Recommend Iran Feature: The Death of Ahmadinejad's Subsidy Cuts Programme (Amuzegar) (Email)

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Under the current circumstances, the Subsidies Targeting scheme --- in its January 2010 form --- is to all intents and purposes dead. Given the current official inflation rate of nearly 25% (caused mainly by excess domestic liquidity as well as international sanctions), the banking system’s latest record of non-performing loans and the growing current budget deficit, no prudent legislature would dare allow further drastic increases in the price of basic consumer staples.


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