World-System (1950-2000+) How Does the Iranian Economy Work?
According to Google AI, the Economy of Iran is facing "significant challenges" to include international sanctions, inflation, currency devaluation, economic stagnation, corruption/mismanagement, dependence on oil, and brain drain. My forecasts for the Economy of Iran are equally pessimistic ( here ). On the other hand, if the Economy of Iran were entirely cut out of the World-System (say for twenty years), the World-System would take a big hit ( here ). Before we make any conclusions about either qualitative or quantitative forecasts, it would be useful to understand how the Economy of Iran works ( HINT : It's an historically driven economy not a Neoclassical Economy ). From the perspective of Systems Theory, the first step is to estimate the state variables (the measurement matrix for the Dynamic Components state space model is presented in the Notes below). There are three state variables (estimated by Pr...