The role of inflation targeting policy in economic stability experiences of selected countries

(With the possibility of benefiting from it in the Iraqi)

Thesis submitted to

Council of the College of Administration and Economics at the University of Karbala, which is part of the requirements for obtaining a master’s degree in economic sciences

By the student:

Alia Khudair Abbas

Supervised by

Prof.Dr

Safaa Abdul-Jabbar Al-Mousawi

Abstract

Inflation is a problem suffered by all economies, whether developed or developing, as it reflects the rise in the general level of prices Economists affirm that the shift in the general level of prices is being monitored by the Central Bank and the necessary measures are taken to reduce it, and from this standpoint it is an implicit shift if we know that it represents the transition from targeting the money supply with its various concepts, by targeting the exchange rate to targeting inflation itself using policy tools Financial and monetary itself. At the beginning of the nineties, many countries adopted a modern method for managing monetary policy in order to achieve price stability, known as the “inflation targeting policy”

. The study proceeds from the hypothesis that “since inflation is one of the problems of the economy and the possibility of affecting economic stability, and since the policy of targeting inflation is a modern policy used to address inflation, this policy had a role in achieving economic stability in the sample countries.”

In order to verify the hypothesis of the study, the structure of the study was divided into three chapters. The first dealt with the conceptual framework of the inflation targeting policy and economic stability, and the second dealt with the inflation targeting policy in the Algerian and Egyptian economies and the possibility of benefiting from it in the Iraqi economy. Inflation in economic stability (Algerian and Egyptian)

The study concluded that the theoretical framework of inflation targeting policy and its role in achieving economic stability

Analyzing the role of the inflation targeting policy in reducing inflation and achieving economic stability in the selected sample countries, and that this policy can be applied in the Iraqi economy after achieving the conditions that should be applied for the success of this policy.