Optimal management of macroeconomic policies (monetary-currency) A missing link in the fight against smuggling of goods and currencies

Abstract:

A review of the country's three decades of monetary and foreign exchange policies suggests that the financial and budgetary structure of the government has been managed in recent decades so that the Iranian economy increases each year with significant liquidity and subsequently with rising prices and Inflation has been associated. In the first two decades after the triumph of the Islamic Revolution, due to severe currency restrictions, the free-market exchange rate increased in line with the price index, not much in terms of smuggling. But since the early 1980s, tightening exchange rate policy, increasing liquidity and inflation on the one hand, and relative exchange rate stability on the other, have made the relative price of commodities exchangeable to non-exchangeable commodities profitable. Import exchange and change at the expense of domestically produced goods. This, while affecting the domestic industry, led to an increase in the profit margins of smugglers (formal and informal importers). Thus, the recent policy in practice exacerbated the phenomenon of trafficking as one of the problems of the country and pushed a significant portion of the country's capabilities to that end. The results of the present study indicate that although during this period the government has committed itself to combating the phenomenon of trafficking, macroeconomic policies, especially in the area of monetary and foreign exchange, have exacerbated the phenomenon. The smuggling system has been in place and has effectively counteracted deterrence measures in the area. Therefore, these two sectors (monetary and foreign exchange) can be mentioned as missing links in the policies of combating and managing trafficking in goods and currencies.

Language:
Persian
Published:
Journal of Hidden Economy, Volume:4 Issue: 12, 2019
Page:
149
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