تقوی

Mahdi Taghavi, a faculty member of Allameh Tabataba’i University, claimed the Capital Market as an obstacle rather than a factor of inflation and uttered: If the major volume of liquidity entered housing, gold, automobile or any other parallel markets, we may have experienced a disaster.

Tehran, May .08 (SENA) – Mahdi Taghavi, stated in an interview with SENA: As the Capital Market receives people’s capital in order to use it to boom and grow the companies, it would not definitely cause inflation.

The economist noted: By correctly managing the liquidity and guiding it to productive markets such as bourse, productivity would also grow and inflation would face a decreasing flow.

Taghavi added: Therefore, bourse not only results in inflation decrement, but also increases efficiency and capital cycle in the industry and as a result, increments the productivity which heavily effects in lowering inflation. On the other side, printing money without backing and increase of liquidity in the country rise inflation and increase in the price of commodities.

He also mentioned that inflation moves bourse and the prices of the stocks.

This Allameh Tabataba’i University Faculty Member remarked: With the growth of Dollar exchange rate, the benefit of bourse companies would also increase; but this should be also noted that in unstable currency conditions, the production sites dependent on imported materials and the machinery out of the country, would not be able to produce in economic amounts.

Taghavi, expressing that in inflation condition, bourse is a more secure market to invest in, declared: If government’s policies would be guiding capitals towards productive institutions such as companies and industries in bourse, inflation rate would decrease. Hence, it must be attended that boom in productivity would not be applicable unless having a more serious outlook on the Capital Market.

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