Supply and Demand for Iranian Currency

In the face of new economic sanctions from the EU, just announced on Monday, January 23, the value of Iranian currency against other international currencies has taken a free fall. The lower demand this causes for Iran's exports, combined with the speculations of continued lower demand for Iran's currency, has led to a big drop in demand for the currency, and a big drop in its value.

Here is an NPR article telling the story:
http://www.npr.org/2012/01/26/145863423/growing-pressures-prompt-plunge-in-iranian-currency

As you can read from the article, it isn't only a demand story. Some domestic policy with a different end may also be playing a role.

Fuel vs. Food.

The recent tax cut bill, rushed through at the close of 2010, extends a 45 cent per gallon subsidy for including ethanol in fuel. A recent NPR article discusses how this policy affects the price of food.

NPR: Fuel vs. Food

As an economics professor, I find the article woefully void of supply and demand graphs. If this bothered you too, checkout my newest 'PenCast'

To effectively view the PenCast below, click on the orange button on the top to go to full screen, then click the curvy arrow button on the bottom to rotate the view.

ECO 120: Supply Demand Ethanol
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