Quantitative easing in Iraq
Thursday 10 December 2020 56
Dr.. Basem Brahimi
Japan announced a few days ago a plan to stimulate the Japanese economy by paying approximately seven hundred thousand dollars and this is one of the measures that countries follow in a time of recession,
but the economic crises in recent years have called some central banks, to create a number of (non-traditional) monetary tools to deal with Crises in a way that stimulates economies, as central banks noticed that the impact left by traditional tools, was not able to reach the goals set due to the depth of those Crises.
The adoption of these tools began to spread in many central banks in the world, including the Arab countries, including Iraq, as the Iraqi Central Bank adopted some non-traditional monetary tools.
In the double crisis (security - economic) during the year 2014, the central bank was able to deduct treasury transfers purchased from Before local banks, to contribute to the injection of liquidity close to twenty trillion dinars, which had a prominent impact in overcoming the crisis at the time,
and once Iraq faced the current crisis (health - financial) until the monetary policy was able to provide a number of initiatives and solutions with its traditional and non-traditional tools to confront this crisis
On the side of non-traditional tools, the Central Bank was able to deduct treasury transfers of approximately twenty-five trillion Iraqi dinars in favor of the Ministry of Finance through government banks.
In this crisis, other economic policies (whether financial or commercial) were not able to provide solutions that could contribute to a confrontation in the short-term crisis.
Therefore, the greatest burden was on the shoulders of the monetary policy, which spared no effort in adopting possible solutions in order to overcome the crisis that is considered The most difficult during the past two decades.
Therefore, the monetary policy and despite the difficult environment in which it operates due to the specificity of the Iraqi economy and the type of crises it suffers from, but it was able to succeed to a large extent in providing support solutions to the economy.
Unfortunately, however, we find some people trying to challenge what this policy has provided, sometimes compared to what is offered by monetary policies in developed countries, and this is an incorrect comparison, and at other times in an attempt to reduce the results that have been achieved so far, and the truth requires an objective evaluation of what this policy presented, without Underestimating the results, which we try to list in a column else.