Measuring the Impact of Exchange Rate Shocks on Inflation in Iraq for the Period (2004-2021)

Abstract

Reducing exchange rate shocks is an indicator of the work of monetary policy within the country and clarity in the future vision and sustainability of growth among economic policy makers in general and monetary policy in particular. Monetary decision makers can intervene directly by taking control of monetary variables to achieve monetary balance. Any failure to achieve balance causes exchange rate shocks, which are a dangerous indicator and a clear defect in monetary management because of the effects these shocks have on inflation. These shocks may occur in a manner agreed upon by the monetary authority to address inflation, and these shocks may be either positive or negative. Negative.