Harmonizing the fiscal and monetary policies to achieve the requirements of financial sustainability in Iraq for the period (1990-2018)

Akhlas Shaker Aomran
supervised by
Dr.Amer Omran AL- Mamouri

Abstract

The research aimed to analyze the indicators of both the financial and monetary policies and their impact on the sustainability of the financial situation in Iraq for the period (2003-2018), and to verify this, a process of analyzing the development of fiscal and monetary policy variables and calculating the financial sustainability index was made, and their direct impact on financial sustainability with the possibility of Achieve sustainable growth in Iraq. Therefore, it is necessary to achieve consistency and harmony between the monetary authority (the central bank) and the political authority (the Ministry of Finance) to achieve the requirements of financial sustainability, and this requires the government to diversify the sources of financing its budget deficit due to the decline in public revenues, which is due to the decline in oil prices, which is the main source of revenue. And the limited tax revenues and the increase in public expenditures, as a result, this led the government to turn to public debt, in both parts (internal and external). This necessitates organizing the relationship between them to maintain secure borrowing borders, and this falls within the responsibilities of those in charge of both policies.