Home
The independence of the central bank .. and consultation with the government .. prerequisites for the success of monetary policy
"The budget and levies are the most important instruments of fiscal policy .. and currency and related is the most important monetary policy tools .. so entrusted Finance Ministry of Finance responsible for policy .. and the monetary policy of the Central Bank as banks Bank, according to the Constitution and the law of public administration Almalahodin No. 95 (2004 average ) and the Central Bank Law No. 56 (2004 Amendment). and put fiscal and monetary policies have under the supervision and approval of the Parliament .. The budget prepared by the government and discuss and recognize the Parliament .. as well as "do not impose taxes and fees is not amended, collected or eliminated except by law" (Constitution 28). . and "The central bank is responsible before the House of Representatives" (103).
The relationship document between fiscal and monetary policies, and has already identified Bank Act (Article 24) consultation and cooperation "in a regular periodic meetings with government officials to exchange information and views on the possibility of monetary and fiscal policy coordination", including the presence of conservative cabinet sessions related. The government (Ministry of Finance) implement fiscal policy under the laws and regulations. Conversely, select the Constitution and the law of direct responsibility for the bank's monetary policy. I knew his powers clearly also developed a series of prohibitions to prevent any violation of its independence as a Hafiz financial assets of the nation and not just the Treasury money. -mthela- Granted him the right to issue currency and the granting of licenses for banks and control including government .. and prevent the law (Article 26) lending to the government .. ward of the state bearing debts that are common among states policy. Prevented the Bank Act Iraq's money and still protects it from debt bookings .. that day amounted to $ 140 billion because of the policies the spending exuberance and desire of governments to lay hands on the financial assets of the country and its reserves .. and that any violation of the base of the independence of the Bank necessarily mean the possibility of the fall of those assets under penalty bookings .. not to mention the disruption of exchange rates and a series of serious implications inherent in this nationally.
Without neglecting the negatives, but the central bank's success -baltaaon with the Ministry of Financial reduction in inflation rates to settle at figures monounsaturated .. and reduce debt, interest rates and currency stability and increased precautions negative case to more than $ 60 billion, is one of the fruits of independence of the bank and uphold the Constitution and laws .. and that any tampering or exceeded the independence of the central bank, and link without Parliament, is not a risk to the bank, but also on the country as a whole. "
[You must be registered and logged in to see this link.]
