Monday, April 27 / April 2015
Brief focus of this paper to determine the basic parameters of the Iraqi monetary policy as is the practice at the level of the actual fact, during the first period 2003-2012, and the diagnosis of the actual limits of its role in the Iraqi economy movement II. The paper begins with a review goals and tasks of the Bank's monetary policy set by the central Iraqi law and has the tools that the bank announced the employ of the impact on the cash basis and cash offer that, and to serve the implementation of the tasks of this policy and the achievement of their objectives efficiently and effectively. And go Find then to diagnose axes and Staff fundamental actual monetary policy of the Central Bank of Iraq; and then moving to identify the roles and functions of this policy and the disclosure of functioning and follow-up and evaluation of the actual impact on the movement of the Iraqi economy in light of the structural peculiarities and the reality of its institutions, financial and markets away from the assumptions and wishes and without mechanisms Pre-commitment convictions or beliefs Garmestendh to analytical frameworks solid and coherent. The paper provides the last part is a number of conclusions and observations. The paper shows that the autonomy granted by the law of the Bank Iraqi Almkza are pretty much the independence of the theory, or rather hypothetical, not actual independence. Starting the government spending, funded mostly from oil revenues, is responsible for the launch of the expansion of the money supply. Also, the priority given to control the path of the exchange rate towards maintaining its stability are imposed to neutralize the impact of government spending on the money supply. In addition, the diminutive Fa available for open market operations and ease of transfer of foreign exchange and capital of the country and to weaken significantly from the Iraqi Central Bank's ability to exercise a clear and effective interest rates on bank and paid Almottagadah effect. The paper also goes that the role of monetary variables in the Iraqi economy movement is doomed at the present time to be modest. On the one hand the first monetary policy does not have little effect on the oil sector, which contributes at least 45% of the GDP impact. On the other hand, the ban imposed by the law on the central bank from lending to the state robbed the bank of a channel for active intervention in the drafting of the state budget and determine the size and structure of government spending, which is the primary engine of activity in the non-oil sectors of the Iraqi economy. Third, the central bank, and as shown by the analysis of available indicators, it is unable to exercise significant influence on the interest paid and received imposed by banks nor credit policies on actual prices. Fourth and finally the role of banking institutions and bank credit in productive activity and investment to the Iraqi private sector business, modest in size and contribution, is still very limited. Iraqi Economists Network
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