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View Full Version : Monetary policy risks in Iraq and required correction.Dr. Raad Twigg



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11-23-2013, 09:24 PM
Monetary policy risks in Iraq and required correction.Dr. Raad Twigg (http://almowatennews.com/index.php/5/5102-2013-11-23-14-56-04.html)

Created on Saturday, 23 November 2013 14: 56 | Last updated on Saturday, 23 November 2013 14: 56 | Posted on Saturday, 23 November 2013 14: 56 | Posted by: citizen newspaper | Visits: 20

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Dr. Ra'ad Hamud Abd al-Husayn Twigg

Monetary policy is intended to include a set of policies and measures and use the various tools associated with the regulatory and supervisory actions to influence the money supply in the market to achieve the goals of economic policy and improve economic performance

There are a multitude of definitions and that constitute the profile of monetary policy, as there are two definitions of the narrow definition (as managing expansion and contraction in the size of the cash for the purpose of obtaining certain goals) (1
The narrow definition is limits on monetary policy and inventory management, however, the Monetary Authority (Central Bank), tracking cash effects resulting from actions of cash. the monetary policy in Iraq

Cannot continue at the top of the mountain of snow be steel structures are weak, still dream of Iraqis turn their country into an important economic Center at the regional and international levels,

but the dream into reality requires a bypass past legacies, secretions and initiate new procedures after absorption and assimilation of these secretions, and the efficiency and effectiveness of monetary policy and the stability, is of any real economic growth,

we all know the essence of the problem Cash in Iraq, must be addressed by the economic and monetary dimensions,

there is a monetary imbalance phenomenon is real is not dealt with decisively in the filter or deal based on step by step, until we reach the stage where the monetary turmoil in the reduction process of adapting broad and extended and uninterrupted,

and so is given the opportunity to risk inherent to running out of cash and monetary environment, When the necessary conditions exist, but the bureaucracy and autocracy of the solutions,

and in this area we must recall that the main problem inherited from the previous regime are huge money supply and prevent the development of the financial and monetary system in Iraq so that we will in our study all elements that threaten the integrity of the financial system, matrix measuring gravity webasthadam different items on the financial and monetary system in Iraq for the period (2003-2012), which should be measured periodically as a means of critical analysis,

To determine the direction of future monetary policy both expansionary or contractionary or offensive or defensive in nature, and appropriate monetary conditions to minimize the cost of that risk, and table (1), (2) notes
Table 1 risk matrix surrounding monetary policy (2013) (2012
Table (2)
Factors affecting the cash demand function
Matrix measure the seriousness of various elements on the financial and monetary system in Iraq (2003-2012)

The current GDP and double its productivity and its Chairperson and distributive and the pulling out, (21, 31), then the risk of demand for money in the area of dollarization (13, 55), followed by oil price risks and rising and falling depending on the level of demand in the world market for political and economic reasons, (13, 14) oil and then risk the Central Bank auction sales (7170) and practices of speculators, and the little impact of risks

Exchange rate (28, 21.) growing international monetary reserves, and inflation (6758.) for a ration card, the interest rate and the role of commercial banks (-2.50),

and as a result of risks to monetary policy in Iraq and raised in 2010 and we still call for the formation of a high authority for monetary policy, which means not jumping on the Central Bank is part of the Central Bank and at the same time we are not agents or surrogate Central Bank but we are researchers for scientific truth without personal interest and enjoyed political neutrality

This call is not consumer information or entertainment, but a real invitation to deepen and enable the work of the Central Bank, that the call was presented to former officials of the Central Bank, has not been dealt with and the current officials, the media, and the answer was that they refuse to control the Central Bank and monetary policy such as in States that formed the stable cash,

we say that monetary policy is the Development and updating of the regulatory framework or new organizational chart of the Central Bank, not a burden, a body chaired by the Governor of the Central Bank where the base of participation in decision-making, and lstratigiat cash away and medium-term prospects for action in the short term,

leaving the implementation to the Board of the Central Bank of any dynamic work of this body and its evaluation of roles of monetary policy,

the monetary policy is strengthening not Focus on the Monetary Authority and mechanisms for all central banking, and the use of the best scientific means and methods and develop general goals in a monetary policy, and thus are not a distraction to the Organization but focused package,

and that the composition of this body will be an unprecedented for the proper cash handling with enormous oil revenues,

according to the national energy llstratiget and the arrival of Iraq's oil production to 10 million barrels so far The 2030 a major Iraqi oil field and oil prices expected to reach more than 200 dollars a barrel, ensuring greater coordination of monetary and fiscal policies,

and in this area in response to the statement by officials of the Central Bank, the Monetary Authority was formed in stable and unstable cash such as the United States and South Korea to stable and Egypt and Jordan to unstable and many others (see the article by Dr. bhuie_deol on Iraqi economic, And Ph.d. thesis student Raad Hammoud Twigg, presented to the Faculty of management and economics, the University of Kufa, 2010), and above the body shaping monetary policy would open the door to a second line of leadership and prevent monopoly cash complained the decision consultant Central Bank Governor Dr Ahmad albrihi

Sources: () Mr. Abdel moniem Ali, Dr. Nizar Saad Eddin Al-Issa, an earlier source, p. 351.