Institutional Change and Macroeconomic Performance in Iran Two Decades After the Revolution (1979-1999)

Interest in economic policy and performance in Iran under the Islamic Republic remains vigorous two decades after the Revolution. Since 1979, Iran has undergone important socio-economic and institutional changes and has been affected by significant economic and political upheavals. This paper examines macroeconomic challenges during different phases in the post-revolutionary period and assesses the general economic track record since the fall of the Shah. It argues that, two decades after one of the largest mass-based Revolutions of modern times, fundamental economic transformation is as yet unrealized and Iran continues to grapple with important, unresolved dilemmas affecting the nature of her economic policy and institutions.