Charismatic political authority and populist economics in post-revolutionary Iran

This paper undertakes a political analysis of economic policy in Iran in the post-1979 period, and examines a specific kind of populist economics within the legacy of the rentier state as a result of the emergence of charismatic political authority. It discusses the implications of charismatic authority which led to the implementation of populist economics, and which coincided with economic and political instability during the reign of Ayatollah Khumaini and afterwards when his successor was involved in a crisis of routinisation of charismatic legitimacy. In doing so, the economic effects of such policies are examined in terms of the (re)distribution of income and the establishment of para-governmental organisations, the overvaluation of the national currency, and the budget deficit and its inflationary pressure.