Friday, October 30, 2020

Sanctions have long history of not achieving their stated goals: Steve Hanke

Tehran (ISNA) – In recent days, Iranian financial markets, especially the currency market are experiencing a new round of volatility, which may be a result of the U.S presidential election; We’d asked professor Hanke for a commentary.

Steve Hanke is a Professor of Applied Economics at the Johns Hopkins University in Baltimore (USA). He is one of the world's leading experts on currency boards and measuring and stopping hyperinflations.

There will be no changing in Iran’s policy stance anytime soon

Asked about the outcomes of the U.S presidential election on Iranian financial and exchange markets, Hanke said, “I do not anticipate that the outcome of the election will change the U.S. posture towards Iran. The main reason for that is that I don't anticipate that Iran will be changing its policy stance in any fundamental way anytime soon.

 Prediction about the value of dollar if Biden wins

According to Hanke, there is no anticipation for any dramatic changes in the course of the dollar that would be affected by the outcome of the election.

New sanctions on Iran’s oil sector

U.S treasury announced new sanctions on Iran's oil sector. Answering about whether these sanctions are as effective as previous sanctions, Professor Hanke responded, “These sanctions will simply be more of the same. As for me, I'm against sanctions in principle, and, as a practical matter, they have a long history of not achieving their stated goals. Indeed, the history of sanctions is one in which sanctions mainly cause a “rally around the flag effect” in which those who are targeted by sanctions simply become more supported and entrenched. In short, sanctions don't work, and I do not like to embrace policies that do not work”.

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