Abstract
The study aims to demonstrate the effect of each of the legal reserve and the discount rate on some indicators of economic stability represented by (money supply in the narrow and broad sense, inflation, and gross domestic product) based on the analysis of the financial reports of the Central Bank of Iraq for the period from 2010-2020 using the descriptive and deductive approach in Testing the hypotheses of the study, a set of conclusions were reached, the most important of which is the emergence of a positive relationship between each of the independent variables, represented by the discount rate with the money supply. Basic for the preparation of the financial budget.
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