The Impact of The Application of Financial and Monetary Policies on The Most Important Economic Variables

Abstract

The research aims to identify the impact of the application of financial policies represented in
(government spending) and monetary policies represented in (the rate of growth of the monetary mass)
on the most important economic variables in Iraq during the period (2004-2018)The research found that
there is an impact of financial policies on the unemployment rate and the effect was positive, as well as
the rate of inflation, the effect was negative and on the value of foreign direct investment, the effect was
positive, and the absence of an impact of financial policies on the rate of growth of GDP in Iraq during
the period (2004 – 2018)Likewise, there is no effect of monetary policies on the rate of growth of the
domestic product, the unemployment rate, the inflation rate, and the value of foreign direct investment
in Iraq during the period (2004-2018)Research recommends The necessity for the Iraqi government to put
in place more effective financial policies through which it can have an impact on economic
development, Increasing government spending rates on sectors that help in bringing about economic
development quickly and providing job opportunities, which helps reduce unemployment rates
dramatically, Working to reduce the economic burden on individuals and companies in order to
encourage them to work and increase production rates, which helps in achieving the required economic
development, The necessity for the Iraqi government to develop more effective and influencing
monetary policies on macroeconomic variables, The necessity of setting a comprehensive development
plan for Iraq that includes all economic, social and political aspects