مجلة الدراسات الاقتصادية والادارية (Jun 2024)
The efficiency of monetary and financial policies tools in enhancing financial sustainability in the Iraqi economy-(2010-2021) analytical study
Abstract
The use of monetary policy and fiscal policy by the government has important dimensions and multiple indicators of financial sustainability, through the link between the development of these indicators and the extent of the government’s use of its monetary and financial tools. Therefore, the research aims to demonstrate the extent to which the Iraqi economy applies financial sustainability indicators during the period of the study and its impact on the two policies. Financial and monetary. To achieve this, we relied on the inductive approach in a descriptive, comparative manner, which relies on an evaluation of the most important different methods of financial sustainability. The research started from the hypothesis that achieving compatibility between monetary and financial policy tools could contribute to restructuring the Iraqi economy toward achieving indicators of financial sustainability. The research reached a set of conclusions, the most prominent of which is the existence of strategic and tactical challenges facing central banks in designing a strategy to formulate policy. To integrate the framework of monetary policy and macroprudential policy, especially to achieve the dual goals of monetary (price) stability and financial stability, as well as a relationship between monetary and financial stability, whether they are alternatives or complements. The research recommended the necessity of directing economic indicators to change the composition of the monetary base so that the largest part of it enters the circle of economic activity, understanding the movement of macroeconomic variables in their circumstances and the trends influencing them locally and externally and achieving optimal employment of financial and monetary policy tools and compatibility between them to reach financial stability.
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