Ahmadinejad is bad at economics too
On Friday, I had lunch with Abbas Milani. He reinforced the impression that Larry Diamond had given me about the internal dynamics in Iran. As Milani pointed out, a country where the price of gold is rocketing up is hardly one where those with money are confident about future stability. Ahmadinejad’s economic policies are totally ...
On Friday, I had lunch with Abbas Milani. He reinforced the impression that Larry Diamond had given me about the internal dynamics in Iran. As Milani pointed out, a country where the price of gold is rocketing up is hardly one where those with money are confident about future stability.
Ahmadinejad’s economic policies are totally wacky. He has reduced interest rates to below the level of inflation. Unsurprisingly, the governor of the central bank wasn’t too keen on this. So, Ahmadienjad just took away that power from him. It is estimated that there has been capital flight of between $50 to $200 billion over the last four months. All of these economic problems and the fact that Iran has to import gasoline suggest, to my mind, that a blockade might be the overlooked option here.
More from Foreign Policy


A New Multilateralism
How the United States can rejuvenate the global institutions it created.


America Prepares for a Pacific War With China It Doesn’t Want
Embedded with U.S. forces in the Pacific, I saw the dilemmas of deterrence firsthand.


The Endless Frustration of Chinese Diplomacy
Beijing’s representatives are always scared they could be the next to vanish.


The End of America’s Middle East
The region’s four major countries have all forfeited Washington’s trust.