Analyzing and estimating some monetary policy tools on inflation rates in Iraq for the period(2010- 2018) A.M.ghosoon talfan madlool, A.M. amina moayed abdulla
Al-Farahidi University
Abstract
Monetary policy is an essential part of the general economic policy, as monetary policy seeks to achieve many economic goals through quantitative and qualitative tools to maintain stability and monetary balance, and its importance increased with the beginning of the twentieth century due to the increase and complexity of monetary and economic problems, Represented in the rise in the general price level , as it is considered one of the most important macroeconomic indicators around which the process of formulating monetary policies revolves for the welfare of consumers.
The study relied on the use of descriptive and analytical methods in analyzing the data as well as statistical method by using the program (SPSS) to find the effect between the independent and dependent variables during the period (2010-2018), the study also aims to identify the role of monetary policy in facing inflationary conditions, this policy is issued by the Central Bank, the most important of which is the legal reserve, the discount price, and open market operations through the three sections, which consist of general concepts about monetary policy tools and inflation. As for the practical section data for all variables was analyzed. Statistically, these results were proven to be identical to the economic theory.
Hence, the importance of monetary policy in solving economic problems has increased, given the multiplicity of effects that monetary policy leaves in various economic fields and aspects, including the impact on the performance of commercial banks by determining the amount of cash reserves in order to guarantee the rights of depositors and the safe use of funds and avoid risks, as well as open market operations which has an active role in curbing the increasing rates of inflation, as well as the discount price and its active role in controlling inflation therefore, the application of monetary policy tools is a preoccupation for banking departments, as banks can lose their customers as a result of the irrational and rational use of available financial resources, which is reflected Negatively on the levels of profits achieved and the financial position of the banking sector in particular and the overall economy in general, and this in turn affects the levels of inflation and limit the increase of its rates.
