The Role of Monetary Policy in Activation of the Real Sector in Iraq

Abstract

The role of monetary policy and its impact in activation of the real sector comes by the financial and monetization role of investment, which is now fully mature in countries with well economic thriving. The problem of the research potentiates that the policy has limited effect in the real sector due to reluctance of due to security cause and monetary cause like investment in monetary sector due to increase in the interest rate or speculation in the selling and buying the foreign currency (dollar). The research finds many recommendations which are the most important as follows: 1. Follow monetary policy with specific character as it contains facilities to lower the currency rate to the sector. 2. Support the monetary policy measures by following the commercial protective policy of the national product.