The monetary authority is working to keep the trading volume

2/9/2015 0:00

BAGHDAD - Imad emirate
numerous concepts which included monetary policy has been defined by some economists as all the decisions and monetary measures, regardless of whether the goals monetary or non-monetary, as well as all the decisions of non-cash, which aims to influence the monetary system, others defined as managing the money supply or Monetary growth is the width of each time period in a harmonious economy rate. In this regard, the Dean of the Faculty of Administration and Economics at the University of Mustansiriya d said. Qusay al-Jabri: adopt a monetary policy target or set of targets after clear on the structure of the economy, which makes monetary policy an integral part of economic policy.

He said in his speech for the "morning" that placed the goals of monetary policy seeks to achieve a high level of use so keen the monetary authority to stabilize economic activity at the highest possible level of employment of natural and human resources, and is working to take all the necessary measures to reduce the levels of unemployment and the accompanying deflationary factors in output. He added: operating monetary policy on price stability and mitigate the violent and constant changes in the level of those prices to the attendant fluctuations in the value of money, and the resulting adverse effects in the distribution of income and wealth level and the allocation of economic resources.

And between Jabri: the goal of price stability comes from the most important priorities of the monetary authority to maintain the value and volume of trading in the cash economy, and maintain a balance with the monetary value of the real value of the economy in relation to the growth of output and minimize the output gap. And monetary policy to improve the balance of payments is seeking through the control of interest rates and bank credit to adjust spending economic units in order to maintain the integrity of the currency value of the swing that infect by the balance of payments deficit.

He said Jabri: When a deficit in the balance of payments raise the monetary policy interest rate, leading it to lower credit economic units and then their liquidity which makes them regain their capital employed abroad on the one hand and the flow of foreign capital to the inside on the impact of higher domestic interest rates, leading to rising foreign and improving asset size of the balance of payments and the opposite happens in the case of surplus, the monetary authority also seeks to influence the investment environment and rehabilitation and then achieve a continuous and adequate increase in GDP growth or average in real per capita by influencing investment by changing the interest rate, leading to achieve growth rates in output.

He noted Dean of the Faculty of Business and Economics to the existence of obstacles facing monetary policy represented Conflict of goals where the monetary authority to suffer from the inability to achieve two goals or more in that one, referring to the achievement of stability in interest rates and access to a high rate of use, as the reduction of inflation requires a deflationary monetary policy works to raise interest rates, causing reduce investment and use. He said The other constraint is the slowdown in monetary policy as required to achieve the ultimate goal of a range of measures that require a period of time to pass and begin implementation and achieve results.