Monetary Policy and Its Role in Facing Financial Crises in Government Banks

Abstract

The Monetary Authority in Iraq has set a set of foundations and rules aimed at reforming the Iraqi economy and resolving financial crises in government banks, and has taken many measures in this aspect on the monetary level, the aim of which was to protect and strengthen the Iraqi economy. And monetary stability in order to create an economic environment that depends on the mechanism of demand and supply, and the main goal of the Central Bank of Iraq was behind striving to achieve and maintain price stability and work to create a competitive financial system based on a market economy, the goal of the Central Bank was also to promote sustainable growth, with an evaluation view For the banking monetary policy in Iraq, there has been (relative) success achieved with regard to its primary goal, which is to maintain a stable domestic price, but the process of promoting sustainable growth, employment and prosperity remained outside the range of capabilities, and the reason is due to the lack of response of economic activity to benefit from this relative stability Before the bank controlled the change in commodity economic activity due to the lack of an economic policy in the literal sense known in economic monetary policy, in which monetary policy is one of its tools as well as fiscal policy, trade policy, planning, employment policy, agricultural, industrial, oil, investment and private sector policy