If the stock market falls, it will have many consequences for the country

According to the  Gold Cafe , quoted by Tasnim News Agency, the stock market attracts liquidity, and if we do not have hyperinflation at the moment, there is only one reason, and that is the stock market. But the stock market is moving towards inflation and bubbling, usually when the stock market bubbles, this bubble is emptied in the securities market, and of course, this emptying has been done to some extent.

 But why are bond prices so low? Because the price of bonds has increased due to the increase in buyers. When the bond price was 35%, no one doubted the depth of the bond market, while inflation was 8%, now the inflation rate is 40% and the bond rate is 13.5. This indicates that buyers in the stock market have risen sharply and doubts about the depth of the market are unfounded.

Of course, this opportunity window is not always open. Now, according to Corona, this window has been opened and it should be used to the fullest. He continued: "Most of the calculations I saw in the papers have serious problems and are deliberately showing that Iran is on the verge of a debt crisis, while it is quite the opposite and we are close to an inflation crisis and the inflation crisis and debt are in conflict." .

 If the stock market collapses, it will have many consequences for the country, and we can no longer control inflation so easily.

 Another plan is that if ten thousand billion tomans are exchanged in the stock market a day and if the government sells one thousand billion tomans of shares in the stock exchange, the government budget deficit has been provided. This is dangerous in this situation and will lead to the collapse of the market, but if we stabilize the stock market, it is possible to cover some of the budget deficit from the stock exchange.

 It remains to be seen in practice how much the government can sell bonds if we keep the market balanced. It is possible that if you want to keep the market balanced, you will have to spend more than the money you earn to stabilize the market.

 The stock market may not have the capacity to cover the budget deficit. There is no doubt that the stability of the stock market is preferable to the use of the stock market as a tool to cover the budget deficit. Because if the stock market collapses, the resources that are in the hands of the people will enter the market and services sector and will cause a sharp rise in prices.