MONETARY POLICY AND ITS ROLE IN REDUCING THE IMPACT OF PUBLIC DEBT ON IRAQ'S ECONOMY AFTER 2003

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Mostafa Kazemi Najaf Abadi, Ahmed Jabbar Shaye

Vol 18, No 3 ( 2023 )   |  Licensing: CC 4.0   |   Pg no: 48-64   |   Published on: 30-03-2023

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Abstract
The impact of monetary and financial factors on Iraq's state debt from 2004 to 2021 is examined in the study. Bond sales, transfers from the Treasury, and external borrowing from foreign institutions all go toward covering the deficit. Instead of investments, current costs are frequently paid with borrowed funds. Despite the federal budget having fiscal surpluses for most of the study years, the budgetary authority nevertheless found that pausing was the best course of action given its control over the money supply and the lack of specific government plans for future budgets. The findings of the data analysis and formal analysis showed that there was little correlation between the financial and monetary variables. This was principally brought on by the financial authority's domination, failure to make payments for most of the surplus years, and the Paris Club's debt reduction.

Keywords:
monetary policy, fiscal policy, public debt, exchange rate, GDP, interest rate

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