The role of monetary and fiscal policy in addressing inflation in Iraq

Abstract

The study aims to demonstrate the degree and importance of monetary and fiscal policies and their impact on inflation rates in Iraq. The study aims to know the variables that affect inflation. As for the structure of the study, two approaches were used. The first is the theoretical framework of the monetary and fiscal policies for the research, while the second approach includes measuring and analyzing the impact Monetary and fiscal policies in addressing inflation in Iraq for the period (1990-2021) through the Regression Model for Distributed Time Lags (ARDL). The study concluded that monetary and fiscal policy variables have a significant and strong impact on inflation. Therefore, coordination and integration between monetary and fiscal policies has a significant impact on Maintaining acceptable levels of inflation rates, as well as showing the existence of causal relationships between inflation and monetary variables on the one hand, and between inflation and financial variables on the other hand.