Measurement and analysis of the effectiveness of monetary policy tools developed in the indirect control of the general liquidity in Iraq for the period (3/2005- 3/2007)

Abstract

The active monetary policy, can not be achieve its goals unless control of the general liquidity, which is the phenomena of the short term. The control of the general liquidity is one of the tasks or priorities of the monetary authority of the Central Bank. Over the monetary history of Iraq, the monetary policy lose the role and flexibility needed to guide the economic activity as it has failed in counter the effects of inflationary pressure by fiscal policy because of the sterilization policy pursued by the monetary authority at the time, and kept this role until the new act of Central Bank No. 56 for the year 2004, which was accompanied by a shift in the approach and mechanism of monetary policy by emphases on policy instruments of indirect monetary as attempt to reduce inflation and maintain stability in the indicators of the monetary policy.