ABSTRACT
In mid-February 2013, some 43 Iranian academic economists sent a long, open letter to President Ahmadinejad, warning him about the gravity of the country's current economic crisis, and asking him to reconsider his ongoing socio-economic policies in order to forestall national upheavals. Ironically enough, both rising and falling world prices of crude oil have contributed to rising inflation, either through undertaking expansive fiscal measures or resulting from budget deficits financed by the Central Bank of Iran (CBI)'s printing press. Endemic to Iran's post-revolution economy, inflation has been generally caused by: a steady increase in production costs on the part of mushrooming and highly inefficient state enterprises; stagnant productivity of labor, capital, and management; and steady increases in government expenditure, accompanied by perpetual budget deficits. Iran's fundamental economic woes are not all caused by sanctions, and they are not going to go away if sanctions are removed.
