Coordination between monetary and fiscal policies and its impact on monetary inflation in Iraq

Authors

  • Jabbar Saadoon Darag AL-Nahrain University, Faculty of Business Economics, Department of Banking Economics, Baghdad, Iraq
  • Sahar Fathallah Muhammed Ali AL-Nahrain University, Faculty of Business Economics, Department of Banking, Baghdad, Iraq

Keywords:

Monetary policy, Fiscal policy, Inflation and ARDL

Abstract

This study indicates the effectiveness of fiscal and monetary policies in influencing inflation in the Iraqi economy, as fiscal policy affects raising inflation rates and the general price level, while monetary policy affects reducing inflation during the period (2004-2023) in the Iraqi economy. Therefore, the impact of the two policies on inflation was measured and analyzed by studying the problem of autocorrelation using the ARDL program, where a sample of fiscal policy tools was taken and represented by public expenditures, while the money supply was taken as an expression of monetary policy, and the data was taken from the Central Bank of Iraq. The study concluded that monetary and fiscal policies are not significant and do not affect economic inflation in Iraq. The study recommends adopting an economic policy that tends to activate productive sectors and activate the role of the private sector in parallel with the optimal use of oil resources in light of fluctuations in global oil prices and opening the door to investments, with the adoption of a balanced monetary policy coordinated with fiscal policy and calling for the flow of investments.

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Published

2024-11-21

How to Cite

Darag, J. S., & Ali, S. F. M. (2024). Coordination between monetary and fiscal policies and its impact on monetary inflation in Iraq. International Journal of Economic Perspectives, 18(11), 2488–2505. Retrieved from http://ijeponline.org/index.php/journal/article/view/732

Issue

Vol. 18 No. 11 (2024)

Section

Peer Review Articles
Copyright & Licensing

Copyright (c) 2024 Jabbar Saadoon Darag, Sahar Fathallah Muhammed Ali

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