Political Economy of Inflation in Iran

Undoubtedly, growth, inflation, and unemployment are the most important macroeconomic indicators that have determinant effect on all other economic indicators. One of the important attributes of these variables is their close
relationship with one another and they are just neutral numbers that need to be interpreted. The Present article in the framework of literature of political economy of inflation challenges the traditional hypothesis: "Inflation enriches the rich and makes the poor poorer. The crisis of the 1930s created a Keynesian revolution that it offered a macroeconomic revolution which like classical economics and Marx was a class-based one and the Phillips curve that inspired by such a revolution. The Phillips curve confirmed the trade of between inflation and unemployment, which this relationship was remained for more than two  decades at the top of the economic plans of the advanced capitalist countries as a manifesto. The phenomenon of stagflation showed that the Phillips hypothesis was only statistically correct and not as a theory. In such a space, the advent of the revolution of the rational expectations of macroeconomics, which insisted on the "Non accelerating inflation rate of unemployment (NAIRU), kept out the Keynesian macroeconomic. Since the 1990s, economic literature changed their approach toward inflation targeting models that have looked at both of them, the Philips curve and NAIRU, in an effort to explain the relationship between inflation and growth. This paper, with a descriptive-analytical approach, shows that the land reform of the 1960s in Iran the liberalized of labor and capital surpluses from the agricultural sector to the industrial sector due to the emergence of a powerful industrial capitalism and its emergence versus commercial capitalism. We think the nature of the economy Political inflation in Iran has been shaped the land reform. From the adjustment policy so far, inflation control has always been a priority in economic policy. Our impression of domestic and foreign inflation studies suggests that the relationship between inflation and growth can be positive and the effect of inflation on poverty and inequality is a U-shaped elationship.