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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    The failure of monetary policy...a road map that explains the side effects of the Iraqi economic ill

    Rocky
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    The failure of monetary policy...a road map that explains the side effects of the Iraqi economic ill Empty The failure of monetary policy...a road map that explains the side effects of the Iraqi economic ill

    Post by Rocky Sun 07 Apr 2024, 5:01 am

    The failure of monetary policy...a road map that explains the side effects of the Iraqi economic illness

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    Baghdad today - Baghdad
    Today, Saturday (April 6, 2024), Professor of International Economics, Nawar Al-Saadi, revealed the reasons for the failure of monetary policy in Iraq, indicating who bears responsibility for this failure.
    Al-Saadi told "Baghdad Today", "There are several reasons for the failure of monetary policy, including large inflation in government spending, as government spending exceeds available revenues, so monetary policy was affected by increased spending on infrastructure and public services without the availability of sufficient funding sources."
    He stated, “The second reason is the heavy reliance on oil revenues, which makes the Iraqi economy vulnerable to fluctuations in oil prices, which negatively affects the government’s ability to implement effective monetary policies. In addition to the weak financial infrastructure, the banking and financial system in Iraq suffers from a traditional system that lacks Modernity in providing advanced financial services, which makes it difficult for the central bank to implement effective monetary policies to ensure economic stability.”
    He added, "In the case of Iraq, the country's central bank is the body responsible for setting and implementing monetary policy, including setting the interest rate and managing the money supply. However, the government also has a role in determining general economic policies that may affect monetary policy." Such as government spending, foreign trade policies, etc.
    He continued, "The most prominent negatives, errors, and problems of monetary policy in Iraq is that Iraq is now suffering from hyperinflation. There is a large increase in monetary supply and demand in hyperinflation, which negatively affects the purchasing power of citizens and weakens economic stability, not to mention the budget deficit occurring as a result of the disparity." Spending and revenues, Iraq faces a budget deficit that requires additional funding from the central bank or external borrowing, as happened in previous years, especially the periods of low oil and the wars with ISIS, and of course also the exchange rate fluctuations in the last two years played a major role in instability in the financial markets and a negative impact on Investment and foreign trade.
    The professor of international economics concluded by saying, “I think it is difficult to accurately determine the losses due to the multiplicity of factors, the discrepancy in estimates, and also the conflicting numbers from the concerned parties, but the losses could include a loss of confidence in the currency, unstable trading, a slowdown in economic growth, and an increase in public debt as a result of the budget deficit.” "Inflation will increase, and these losses could reach billions of dollars annually, which makes the need for serious reforms in monetary policy urgent in Iraq."
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