political economy of exchange rate with emaphsis on vicious cycles of underdevelopment of production section in Iran economy

Document Type : Original Article

Authors

1 phd student allame university

2 allame tabatabae university

3 Trade promotion organization of Iran

Abstract

A currency crisis is brought on by a sharp decline in the value of a country's currency. This decline in value, in turn, negatively affects an economy by creating instabilities in exchange rates, meaning one unit of a certain currency no longer buys as much as it used to in another currency.currency changes is a main factor in macroeconomic fluctuations specially in under development countries like iran.in recent years great currency crisises have ocuured in iran and they had great impacts on production sector.in this paper we have studied main causes of currency crisese s and their impact on production sector in iran economy.The degree of the effect of the exchange rates on the competitiveness and the profitability of a manufacturing activity depends on the share of imported inputs in total inputs and rate of substitution between imported and locally produced inputs.in countries like iran import goods plays great role in production process and therefore changes in import goods price has big impact on production sector stability.

Keywords

Political Sociology of Iran
Volume 3, Issue 4 - Serial Number 12
February 2021
Pages 3696-3715

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