Iran has unveiled proposals for a stimulus package aimed at boosting investment in productive activities and raising “effective demand” with higher consumer spending. The package is intended to revive a stagnant economy after two years of tight monetary policy, which has seen inflation slow to around 15% from 40% before President Hassan Rohani took office in August 2013.

The new proposals come shortly after four cabinet ministers warned in a letter addressed to Mr Rohani of a looming economic crisis as a result of the discord within Tehran’s policymaking circles, and called for prompt decisions to address current problems before stagnation turns into a full-blown crisis (MEES, 9 October). (CONTINUED - 1025 WORDS)