Fiscal Policy in Iraq and Its Role in the Growth of Money Supply for the Period (1990-2003)

• Post by: Muthanna mjdes
• September 2, 2022
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Ali Jaber AbduiHussein & Magda Pashi Bedewi

Abstract

Fiscal policy is characterized as having a significant impact on economic activity, as the government can achieve through its tools stability in its economy. Fiscal policy occupied an important position as a method for managing the national economy. As for the Iraqi economy it has attracted the attention  of many economists and researchers at the local level. This is due to the different circumstances the country has been through. The economy of Iraq has suffered from many imbalances, led to a decline in economic performance in general. The public budget deficit has also increased , High rates of inflation and unemployment, this led to the trend towards a more effective policy, it can influence monetary variables. In addition to achieving consistency between it and other policies, especially monetary policy in order to influence macroeconomic variables. Therefore fiscal policy and through its tools as a system for economic stability .

This study aims to know the develop payments of financial policy in the Iraqi economy, and its effect on the (m1 , m2 ) money supply variables. This study proceeds from the hypothesis that the fiscal policy in Iraq has an impact on the variables of the money the supply (m1 , m2 ), and this effect produces positive or negative results on the economy as a whole in light of the different

circumstances that the Iraqi economy is going through.

Key words: Public Budget, Expenses, Revenues, Money the Supply(m1), Money the Supply(m2)

DOI: 10.52113/6/2022-12-2/14-28