ISSN: 2265-6294

Fiscal inclusion and its impact on monetary policy in Iraq's economy

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Namareq Qassem Hussain

Abstract

Economic growth has become the primary goal for the advancement of societies, with tangible improvements in the fundamentals of life, and has been intended for all governments to be a critical destination for raising low living standards. Economic growth needed to infuse the spirit of diversity into the trade interaction movement. By diversifying markets and the economy, the need for financial inclusion has emerged through the mainstreaming of financial and banking services at a reasonable cost to the largest number of the public. In particular, low income segments, the employment of the banking business has stimulated activities, services and tasks to include bank accounts and introducing the ATM into the service, finding points of sale, as well as loans and settling the sal aries of State employees, Remittances at the local and external levels have a significant impact on the modernization of the cultural, behavioral and social system of members of this Iraqi society. On the other hand, economic stability is one of the objectives of monetary policy, as it is the way to achieve economic growth in the country. The emergence of a new phenomenon, such as fiscal inclusion, affects monetary policy and enhances its effectiveness within the country, as fiscal inclusion increases the degree to which members of society respond to changes in monetary instruments. Fiscal inclusion would affect the totality of economic variables, including monetary policy rates.The two researchers found that there was a correlation between fiscal inclusion and the monetary policy of monetary policy rates .

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