FT Alphaville " From Gresham to Giffen in Iran Iran's new rial-ity is biting hard. From Bloomberg (with our emphasis): "Most of my customers just look at products behind the window and pass," said Behrouz Madani, 42, who owns a butcher shop in northwest Tehran. I see them going to the next store, which is a bakery, to feed their families with bread. Security forces were also sent to the city's bazaar after shopkeepers refused to open. The inflation rate, estimated by Parliament Speaker Ali Larijani at 29 percent last week, has accelerated to the point where the price of milk in Tehran rose 9 percent yesterday. The economic situation has "reached a point where it becomes almost impossible not to show reaction," said Anoush Ehteshami, professor of international affairs at Durham University in the U.K. People "are nervous about tomorrow and next week because they don't know how much more expensive things will be," said Mostafa Daryani, 52, whose family owns a Tehran supermarket chain. They only buy their daily needs and ignore most of the things that are not urgent for daily life. Instead of one bottle of milk, they buy two. The best way to undermine a system is what, again? Related links: Rial's plunge sparks Tehran clashes - FT Hyper-inflation has arrived in Iran (and a table of historical periods of hyperinflation) - Cato When Money Dies - Amazon This entry was posted by David Keohane on Thursday, October 4th, 2012 at 8:39 and is filed under Uncategorised.