As people who follow Iran know, the country is currently dealing with a high inflation rate. So what do they go and do? The Lebanese Daily Star has the answer….

Iran’s moderate press and economists Thursday slammed a decision by President Mahmoud Ahmadinejad to slash interest rates, describing the move as incomprehensible” and risking “economic suicide.”

The rate cut, which economists said could overheat an already inflationary economy, appeared to have been taken without the knowledge of Iran’s economy minister, who had said exactly the opposite just hours earlier.

“Economic suicide for banks,” the Mardomsalari (Democracy) newspaper said of Tuesday’s move.

“The economy minister and the head of the Central Bank have to explain this decision since this decree is incomprehensible for economists,” Saeed Shirkavand, economy minister in the previous reformist government, was quoted as saying.

Apparently this decision was made the normal way that decision are made when one madman is calling the shots (this from the Guardian)….

Iran’s financial system suffered a fresh jolt yesterday with panic selling on the stock market after the president, Mahmoud Ahmadinejad, abruptly ordered banks to cut interest rates sharply, despite surging inflation.

The order, which Mr Ahmadinejad issued by telephone during a visit to Belarus and which flew in the face of expert advice – has triggered warnings of a financial crisis and spiralling corruption amid fears of a capital flight from the country’s lending institutions.

The main thing that worries me: If they are stupid enough to do this, what else are they stupid enough to do?