By studying economic documents, it is recognized that people’s behavior regarding their demand for goods and services are divided into two general categories: consumer behavior and speculative behavior. In simple words, consumer behavior is the demand that consumers show for housing, and consumption goods and services and therefore refer to providers to acquire them. On the other hand, the speculative behavior is the part that in order to obtain short-term profit and in some cases to compensate inflation results in purchasing and storing assets, goods and services.
As can be inferred from previous definitions, speculative behavior has a direct relation with inflation. In fact, by establishing stability, we can minimize speculation in the market. The conditions that the Iran’s economy experienced during the past years and prior to the election of the eleventh government were important elements in the appearance of speculative behaviors. Considering the constantly rising inflation rate, people rushed towards markets such as housing, foreign currency, gold and even the stock market in order to keep the real value of their money from falling and to move along with the rise in the general level of prices. However, after the eleventh government took the office and its serious attempt to control the inflation, these sorts of behavior were significantly diminished. As shown by economic data the value of the dollar has not been demonstrating last year’s strange volatilities for quite some times, the changes in the price of gold coin have only been influenced by the price of gold bar in global markets and has been showing logical behavior. Although the housing market has experienced a considerable recession during the past few years, today it is not regarded as a real investment option and only people who are truly looking for a place to live and to cover their consuming needs tend to purchase a residence. The stock market has also faced changed in more or less fundamental variables and is regarded as a suitable investment option. All that was pointed out in the above can prove the fact that since this government has taken the office and the success of the diplomatic team in the Comprehensive Plan of Action people are also gradually trying to adapt their expectations to the economic realities of the country.
It is clear that the pattern of people’s behavior regarding goods and services, as the most important influential parameters on the economy, is on the verge of changing from short-term to medium-term. This fact will grant an excellent ability to the government to maneuver over its long-term planning. Domains such as long-term economic growth and attracting investment are part of the most important challenges that the present government is struggling with. Another effect of a decrease in the inflation rate is the reduction in the risk-free interest rate which will strongly affect the feasibility of investing in infrastructures. As a result, the most important challenge facing the government will be to win the trust of foreign and domestic investors. In fact, the government is trying to reassure the investors regarding the economic stability of the country, and therefore encourage them to invest in downstream industries and the infrastructures. The reason is that by having stability, considering that the interest rates will be low, cash flows from the investments will be discounted at a lower rate, thus increasing the feasibility of the investments will result in the growth and prosperity of the country. This is the win-win deal that within all advanced economies, the investors and those willing to attract investment expect to realize.