Seybold Report ISSN: 1533-9211
Dr. Mostafa Kazemi Najaf Abadi, M. M. Ali Thajeel Yousef al-Tamimi
Vol 18, No 1 ( 2023 ) | Licensing: CC 4.0 | Pg no: 111-128 | Published on: 15-02-2023
Abstract
As the two main tools for influencing the level of economic activity within any economy, fiscal and monetary policies play a significant role in achieving economic stability when they are consistent and in harmony with one another. This is because they work within a single framework to achieve financial goals. The role of fiscal and monetary policies and their capacity to promote stability and economic growth, particularly in terms of coordination and harmony between fiscal and monetary policy, or through their tools to deal with shocks and thus achieve their goals to create an effective economic framework in Iraq, are at the center of the discussion.
The current study aims to analyze and explain the role of monetary and fiscal policies in the Iraqi economy from 2004 to 2017. It also aims to identify similarities and differences between the two approaches' goals, underlying assumptions, and areas of disagreement in order to identify potential ways to increase the rate of economic growth, which embodies that harmony. The primary problem that this essay attempts to address is the existence of a mismatch in the coordination of the fiscal and monetary policies at particular points in the Iraqi economy. This mismatch led to economic instability, weak spots in the economy, and the emergence of financial issues, which were reflected in the disruption and delay in economic growth during the research period.
Keywords:
fiscal policy, monetary policy, policy coordination, economic shocks.