Abstract
Monetary policy in Iraq has not witnessed a significant improvement in its mandated role, a shortcoming attributable to various shifts in its performance and its capacity to influence key economic variables. This decline was exacerbated by arduous political and economic circumstances that undermined its effectiveness; most notably, three successive military conflicts within a short timeframe devastated Iraq’s infrastructure and stalled economic and human development for decades due to the massive depletion of the country’s natural and human resources. Furthermore, the economic sanctions of the early 1990s plunged the nation into profound socio-economic crises, including financial and administrative corruption, lost investment opportunities, and the emergence of speculation and parallel markets. The transition of the political system in April 2003 marked a turning point, entailing the abolition of legislations that had previously subordinated monetary policy to central state mandates. Regarding its functional evolution, monetary policy has played a vital role in mitigating structural imbalances, as the Central Bank utilized its available instruments in coordination with relevant ministries, alongside restructuring the banking system and empowering the private and mixed banking sectors. Nevertheless, there remains a pressing need to refine the application of both direct and indirect tools to achieve desired objectives and to solidify the Central Bank’s role as a primary advisor to the state on banking, financial, and social matters, ensuring optimal harmony between its core mission and the state’s high-level policies.
DOI
10.33095/jeas.v15i55.1263
Subject Area
Economics
First Page
135
Last Page
145
Recommended Citation
Jawad, S. F. (2009). Monetary Policy Constraints and Economic Reform Programs the Reality of the Iraqi Economy. Journal of Economics and Administrative Sciences, 15(55), 135-145. https://doi.org/10.33095/jeas.v15i55.1263
