Theory ( Inflation , Capital , Risk )

Theory ( Inflation , Capital , Risk )

In this theory, investing in an inflationary economy has a high risk, so that the higher the inflation, the longer the return of capital will be and the less accurately it is measured it is, to the point where we encounter very little earnings or no return. The consequences of government’s inefficient actions significantly reduce the productivity of investment in gross domestic product (GDP), the laws of economics on the behavior of producers and consumers that are operating in a free-market system are the same; In this regard, the principle of conflict of interest can be raised in the Iranian school of economy, producers want it to sell their products at a high price and consumers want to buy goods at a lower price.