Role of monetary policy in managing macroeconomic stability in Iraq An analytical study of the monetary policy of the Central Bank of Iraq for the 2004-2018

Abstract

The research aims to assess the monetary policy trends of the Central Bank of Iraq and achieve economic stability for the period (2004-2018). The research attempted to answer the following question: how well can the Central Bank of Iraq continue to supply market needs for foreign currency and meet the demand for it from the available foreign exchange reserves and the low budget returns caused by low oil prices. The research proceeded from the premise that, lowering inflation and maintaining a stable price level results in a desirable level of overall stability. The research was divided into three parts, the first of which included a conceptual introduction to the definition of monetary policy. The second part dealt with the analysis of the impact of monetary policy on the economic stability of Iraq for the period (2004-2018). The third part was limited to conclusions and recommendations. The research led to a set of conclusions that proved his hypothesis, emphasizing the relative economic stability achieved in Iraq behind its monetary policy via the exchange rate index used to target inflation and reference interest rate, which was used to address inflation and reduce the velocity of money circulation.