This Selected Issues Paper on Iran reviews that monetary factors are the main determinants of inflation in the country. Government spending out of oil revenues leads to large liquidity injections that the central bank accommodates owing to its efforts to prevent a significant nominal...

The Islamic Republic of Iran’s 2008 Article IV Consultation underlies that the economy is showing signs of overheating owing to high oil prices and a significant policy stimulus. IMF policy advice has focused on measures to reduce inflation and structural reforms aimed at stimulating growth...

This paper outlines the recent progress in developing Islamic financial instruments for the management of monetary policy and public borrowing requirements and provides details on new instruments currently being developed in the Islamic Republic of Iran and Sudan. The paper also touches on the...

In an Islamic system, as interest is prohibited, banks are expected to operate solely on the basis of profit and risk sharing. This paper describes the developments in Islamic banking in Iran and Pakistan. As these two countries have initiated the most far-reaching experiments with Islamic...

This paper reviews economic developments in Iran during 1990–95. The growth rate of real GDP declined from an average of 11 percent in 1990/91–1991/92 to 2.7 percent in 1994/95. This decline was associated with developments in both the oil and non-oil sectors, such as capacity constraints in...

In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country

Iran has received much attention from a geopolitical and regional standpoint, but its economic challenges have not attracted a similar degree of interest. With a population of 69 million, considerable hydrocarbon resources, a dynamic and entrepreneurial middle class, and a relatively...

This Selected Issues paper discusses the economics of energy price reform in the Islamic Republic of Iran. Economic policies in Iran have traditionally relied on the abundant availability of energy at a low price to finance the country’s economic development. Low domestic energy prices have...

This Selected Issues paper for the Islamic Republic of Iran deals with the analytical considerations relating to the choice of the exchange regime. This issue came to prominence with the exchange rate unification of March 2002. The paper also examines the competitiveness of the non-oil economy,...

This Selected Issues paper analyzes economic growth in Iran. It uses a growth-accounting exercise to quantify the historical sources of growth over 1960–2002, including human capital accumulation and the contribution of Total Factor Productivity to growth. The paper presents an empirical study...