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You have to be upbeat about the Iranian economy – president Rouhani is a monetarist!

This is the new Iranian president Hassan Rouhani on Twiiter (on November 26):

From an economic perspective, we were in a state of stagflation–negative growth + extremely high inflation–first time in 50 yrs.

…Tracking inflation is very important to me. Change in inflation has been +2.2 – 2.3% MoM, which is now reduced to +1.2%

…Inflation has decreased from 43% to 36%–still very high, but it’s an improvement

…Our plan is to bring inflation below 25% by end of next year, from a level of 43% when we took office.

Ok, fine president Rouhani what do you want to do about it?

And here is his answer:

Screen-Shot-2013-11-29-at-10.19.58-AM

Wauw! Is Rouhani’s favourite economist Milton Friedman?

I wish President Rouhani the best of luck in reducing Iranian inflation and in reviving the Iranian economy – it is badly needed. I am sure he will succeed if he follows his apparent monetarist instincts.

HT Scott Sumner and Left Outside.

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