Analysis of the phenomenon of inflation in Iraq for the period (2004- 2015)

Abstract

The Iraqi economy is blessed after 2010 with a low annual inflation rate, but thissituation does not mean that the economy is stable. What has been achieved is relativestability. Oil exports are the main catalyst for this stability by increasing the central bank’sreserves of foreign exchange. Other productive sectors, especially commodities, areremain weak, whether in terms of its contribution to the formation of current and constantGDP, or in terms of annual growth rates. Therefore, the study aimed to analyze thephenomenon of inflation in the Iraqi economy and its causes for the period (2004-2015),in addition to proposing a set of measures aimed at addressing this phenomenon andreducing its levels. The importance of the research lies in its attempt to provide an analysisof the phenomenon of inflation, its causes in the Iraqi economy and the problems it suffersfrom as a result of general fluctuations in price levels and weak production structure. Totake note of the above, the research has been divided into three main parts, the first partof which dealt with the theoretical framework for the concept of the phenomenon ofinflation, while the second part dealt with the causes of this phenomenon in the Iraqieconomy, while the third part went to setting a set of procedures to address thisphenomenon and reduce its levels. The research reached a set of conclusions that provedits hypothesis, stressing that the phenomenon of inflation in Iraq is caused by factorsrelated to aggregate demand or total spending in addition to bottlenecks in the overallsupply, which economic policy makers and decision-makers must take with them andwork to diversify the economy away from oil and that of Through supporting and enabling