The Role of Monetary Policy in Achieving Economic Stability and Growth in Iraq 2011–2016

Abstract

This article analyzes the effectiveness of monetary policy in achieving economic stability and growth for Iraq after a new law gave the Central Bank full independence from government intervention. The new authority gave the Central Bank the ability to control the money supply in order to achieve price stability. In addition, the Central Bank is now responsible for exchange rate stability and the building of strong foreign currency reserves. However, due to lack of investment vision, thus far the country has failed to exploit the more stable environment to achieve growth and economic prosperity.