  This paper considers how sanctions affected the Iranian economy using a novel
measure of sanctions intensity based on daily newspaper coverage. It finds
sanctions to have significant effects on exchange rates, inflation, and output
growth, with the Iranian rial over-reacting to sanctions, followed up with a
rise in inflation and a fall in output. In absence of sanctions, Iran's average
annual growth could have been around 4-5 per cent, as compared to the 3 per
cent realized. Sanctions are also found to have adverse effects on employment,
labor force participation, secondary and high-school education, with such
effects amplified for females.
