Analysis of the general trend of monetary policy and its impact on some macroeconomic variables in Iraq after 2003


The aim of this study is to try to diagnose the successes and failures in the performance of monetary policy in Iraq for the period 2003-2015 and to evaluate the efficiency of modern tools used as a currency auction, which contributed greatly to reducing inflation and controlling it, and analyzing the impact of this on some of the macroeconomic variables. As the research problem lies in the fact that the Iraqi economy has suffered for a long time from the existence of both the phenomena of hyperinflation and instability of exchange rates for the Iraqi dinar, as well as the lack of independence of the monetary authority in the use of its tools to control the money supply as a result of its overall dependence on the governmental authority and the adoption of cheap cash policy to finance Government budget deficit without restrictionsThe researcher recommends that for the purpose of maintaining price stability as an essential part of general economic stability, it is necessary to maintain acceptable rates of inflation, but not by targeting it on the monetary side only, which is what monetary policy has done throughout the duration of the research, but bottlenecks in excess demand must be removed Goods and services, especially non-tradable, by supporting their provision in the real supply side, and this is the responsibility of the financial policy and the executive authority to provide the infrastructure and economic environment necessary to create and bring new investment opportunities that would increase the formation of fixed capital and increase the local commodity supply, Especially the commodity basket, which is the general index of consumer prices..