Perfect solution for stopping Iran´s hyperinflation overnight at no cost

November 9, 2012 in Uncategorized

Perfect solution for stopping Iran´s hyperinflation overnight at no cost

When a top American professor suggests overnight solutions to hyperinflation to Iran, then I can too.

The difference is that the Daily Index Plan comes at no cost to Iran. Very costly Dollarization or an equally costly currency board, as suggested by Prof. Steve Hanke to Iran, are now obsolete and irrelevant solutions.

One half of the Daily Index Plan – capital maintenance in units of constant purchasing power eliminating the entire cost of the stable measuring unit assumption from the Iranian constant item economy – was authorized in International Financial Reporting Standards twenty three years ago, includes a perfect solution and will soon be required by the International Accounting Standards Board worldwide. The other half also uses the perfect solution: the US Dollar daily exchange rate being used as the Daily Index for the Iranian rial´s exchange rate with the US Dollar resulting in a constant rial always being exactly equal to the US Dollar.

The other half: Daily indexing of the entire rial money supply which would eliminate the complete cost of hyperinflation from the Iranian monetary economy overnight at no cost.

Nicolaas Smith

Copyright (c) 2005-2012 Nicolaas J Smith. All rights reserved. No reproduction without permission.

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