Analysis of the Interrelationship between Monetary and Financial Stability and Its Reflection on Economic Growth in Iraq Using Match Theory

Abstract

Financial and monetary stability is the primary aim of all economic systems due to their considerable and prominent role in confronting or transmitting economic crises because of the interweaving of international economic ties and global economic openness. In overseeing the financial system and dealing with economic crises, improving investor and saver trust in the financial system and the degree of its durability, which promotes economic stability. As a result, the Iraqi economy seeks to enhance and expand the strength of its financial system by increasing the Central Bank's supervisory authority over the financial system and improving its ability to stimulate the production process and support the system's economic development. The study focuses on assessing the indicators of Iraqi financial and monetary stability, developing an aggregate indicator of financial stability, and determining the degree to which monetary and financial stability implications reflect on changes in the gross domestic product.