Evaluating Inflation Targeting Policy In Developed And Developing Markets With A Special reference to the Iraqi Economy

    A Thesis Submitted to:                       

To the Council of the College of Administration and Economics / Karbala University as Partial Fulfillment for the Requirements for the Degree of Master of Science in Economics

A Thesis Submitted by:

Alaa Nori Hussein   

Supervised by

Assist. Prof. Dr.                                    Assist. Prof. Dr.      

Safaa Abdul- Jabbar                   Adnan K. Najim Aldin

 Inflation is one of the most obstacles, which suffer all development and advance economes as well.

The inflation refer to the continuous increasing in the general level of the price.so it lead to unstable the price, oscillation in GDP and decreasein  financial saving and abuse the distribution of the wealth in the nation.

Fredman said, the inflation is monetary phenomenon, so, the most nation adopt new  policies in order to manage the monetary policies to reaching the goal of settlement price, this study try to evaluate the using of monetary policy and to study the ability of apply it in our economy, which suffer along the terms (1980-2010), like the war between Iraq and Iran and the second Gulf War, also the final war with U.S.A, which lead to occupation our nation.

As aresult of this conditions ,Iraq economy face high levels inflation , as aresalt of increasing in the volume rate of our currency the hypothesis of our research refer ,the success of exposure to inflation policy ,is differ with respect to the conditions and proce dures, which is needed to apply this policy. In order to be sure of this hypothesis, so the out line of this study devided to three chapters: Chapter One, devoted to the theoietical study of the” theory of inflation”. Chapter Two :in this chapter we choice many application studies (New Zeland, England) and many emerging markets (Chilly, Turky).

Also, we evaluate this study by using the econometric mothods. Chapter Three, we devoted it to the possibility of application the “exposure to inflation policy ” in Iraq economy , through studying the nature of Iraq economy for the terms (1980-2010). The main conclusion, refer to the absent of the conditions of application this policy  which is needed to using this style in manage the monetary policy in the future.