The Central Bank of Iraq, after obtaining its relative independence in managing its monetary policies in the Iraqi economy in accordance with Resolution 56 of 2004, directed towards the use of indirect quantitative monetary tools, including the foreign currency, in response to the modern trends of the market economy as established under the Iraqi constitution. The Central Bank moved away from the policies of financing the budget deficit and directed towards financing public spending by replacing the general budget dollar with the Central Bank’s dinar and this is what made the Central Bank’s reserves of foreign exchange represent the official equivalent of the source money supply. The financing of the budget deficit was carried out by the method of inflationary  financing  or  financing  by  the  deficit  or  the so-called method of cheap cash or overdraft without the presence of foreign and non-foreign financial assets corresponding to cheap cash. Therefore, based on modern trends, the Central Bank of Iraq used the internal monetary sterilization tools (the three monetary tools) and the external monetary sterilization tool (the foreign currency window) in order to counter the impact of foreign flows on the local currency on the one hand and to counter the impact of large increases in public spending on its efforts in cash sterilization operations on the other hand.

Research Problem

The large increases in public spending by the Iraqi central government weaken the efforts of the Central Bank of Iraq in the operations of monetary sterilization and management of foreign cash reserves.

Research Hypothesis

Public spending adversely affects the monetary sterilization indicators, which are basically weak due to the inability of the Central Bank of Iraq to isolate or neutralize the impact of changes in foreign exchange that finances public spending on domestic assets corresponding to the money supply.

The Importance and the Objective of the Research

The importance of the research is to study the efforts of the Central Bank of Iraq in monetary sterilization operations, management and financing of public spending in the budget and the impact of this funding on monetary sterilization policies. The research aims to demonstrate the relationship of public spending with monetary sterilization policies and the direction of this relationship.

The Limits of the Research

The scope of the geographical and temporal research is the Iraqi economy and from January of the year 2005 to December of the year 2021.

The researcher used the descriptive analysis method, graphical analysis and standardization to prove the research hypothesis.

Research Structure

The research was divided into two sections. In the first topic, the conceptual framework of public spending and monetary sterilization and its general indicators was discussed, while the second topic summarized the analytical and standard framework for the relationship between public spending and monetary sterilization indicators.

The First Topic: The Conceptual Framework of Public Spending and Monetary Sterilization

The First Requirement: The Conceptual Framework of Public Spending: Public spending means spending on basic goods and services such as roads, education, security and police, in addition to government transfers such as social security and health care support, which leads  to  the  provision  of  financial  resources  to individuals [1].

Public spending is divided into two parts. The first part consists of federal government purchases of produced goods and services. This part of spending is included in the real GDP. The second part consists of transfer payments. This part of spending is not included in the real GDP because it does not represent goods and services. Producer [2]. In the sense that public spending is central government spending on goods and services and this spending constitutes the financial leverage of the gross domestic product as it constitutes a total demand in the national economy.

Controlling and rationalizing public spending avoids the economy from continuous economic fluctuations and reduces the severity of undesirable price fluctuations that enhance public spending and enter the local economy into a vicious cycle of inflation feeding spending and spending necessary to confront the rise in prices of goods and services, which causes a rise in the state’s general budget deficit and an expansion of the base cash. Therefore, rationalizing public spending is working to increase the effectiveness of public spending to the extent that increases the ability of the national economy to finance its internal and external obligations and reduce the manifestations  of  waste  in  public  spending  to  a minimum [3].

The economic schools differed in their general vision of public spending, as it represents government intervention in the local economy, where the vision of classical school thought was summed up by the need for public spending to remain within the narrowest limits and the best expenditures to be the least in size, because the increase in public spending means an increase in the public budget deficit. This pushes towards more taxes and the attempt to reduce the tax to the lowest levels makes it have a neutral effect, as public spending must be neutral. The classic goal was to protect the industrial revolution in Britain from the tax increase that results in increased public spending. While the vision of the Keynesian school thought about public spending was manifested as the financial leverage to increase production through the technique of effective aggregate demand and to bring the economy to a state of full use and this means that public spending departed from its neutrality and became a tool for economic balance. Keynesians prefer increasing public spending over tax reduction, since public spending is more effective than tax in raising real GDP levels [4]. 

The summary of the foregoing in the vision of the main economic schools is that public spending plays a major role in managing the local economy and raising the efficiency of this spending means raising the efficiency of the local economy and that the dialectic of financial balance and economic balance is decided by the efficiency of public spending and the rationalization and rationality of this spending.

The increase in public spending is a financial expansion by the central government and according to Wagner Law, relative to the German economist Adolf Wagner, there is a natural trend for the growth of public spending in industrialized countries as a percentage of GDP. At a rate greater than the growth rate of the per capita GDP [3]. Raising the efficiency of distributive and productive public spending represents an important goal of rational fiscal policy, as public spending is the most important tool of fiscal policy in raising aggregate demand levels, stimulating gross domestic product, eliminating the positive and negative gap in GDP and achieving balance and economic stability that pave the way for raising the rate of economic growth in the long run. long term, to the general economic well-being of society. Therefore, the objectives of the fiscal policy (and general operational and investment spending) can be defined as follows [5]:

• The optimal allocation of community resources, meaning that the fiscal policy seeks to optimally use these resources efficiently in order to produce various goods and services that meet the needs of society by stimulating the public and private sectors

• Equitable distribution of wealth, as this goal is considered complementary to the first goal, as it is necessary to maximize, diversify and distribute production in a fair manner and correct the imbalances that occur in the distribution and use of resources

• Achieving economic stability, i.e., achieving stability in production and employment and stability does not mean stagnation or stagnation in the economy, but rather prevention of continuous fluctuations in production and prices

• Achieving financial and economic balance, i.e., financial balance in the use of financial resources with high efficiency in order to achieve a balance between revenues and expenditures and economic balance is to reach a state of full use of economic resources

Most of the economists concerned with the political aspect of public spending agreed that there are main reasons for public spending by excluding changes in the general level of prices, namely population growth and popular pressure demanding educational facilities and health requirements for this population growth [6].

The Second Requirement: The Conceptual Framework of Monetary Sterilization

Monetary sterilization represents a monetary policy that is carried out by adjusting or offsetting the rise in foreign assets with a decrease in domestic assets, which means that the monetary basis remains H (monetary base MS₀)  unchanged [7].

Monetary sterilization defines the central bank reducing its domestic assets in a way that prevents the impact of the increase in its foreign assets on the monetary base [8].

We conclude from the two previous definitions of monetary sterilization that sterilization is isolation or monetary separation for the purpose of avoiding the impact of the change of foreign assets on the net domestic assets represented by the basic monetary complexes, which are the monetary basis, which prevents this isolation from causing price problems in the local economy through changes that occur in the increase in supply cash.

The accumulation of foreign cash reserves has financial and monetary side effects and when the central bank decides to absorb the foreign cash reserve by increasing the money supply resulting from the expansion of the monetary base in the national economy, this has repercussions represented by increasing inflationary pressures, or when the central bank decides to reduce cash or net domestic assets. Bank sterilization operations of foreign cash reserves [9].

The state’s general budget is linked to the foreign exchange budget, each of which is for one fiscal year and some uses of the general budget are paid in foreign exchange, such as salaries abroad, international subscriptions and imported goods, in addition to the presence of some investment projects listed in the budget law that require financing in a foreign currency, in addition to the state’s payment of debt installments. Foreign Affairs [10].

There are two types of monetary sterilization that are carried out using monetary policy tools: external sterilization through the currency window, managing the local currency, controlling the supply and demand of the local currency and internal sterilization through the main monetary tools, which are the re-discount rate, open market operations and the legal cash reserve ratio. In order to measure the degree of critical sterilization, there are several methods of measurement agreed upon in most of the research and studies that dealt with the subject of critical sterilization and they will be presented as follows [11]:

Annual Regression Coefficient Method

It is a method that measures the effect of the change in Net Foreign Assets (NFA) on Net Domestic Assets (NDA) according to the least squares method to measure the linear regression between foreign and domestic monetary variables and the general form of this method:

∆NDA=α-β ∆NFA+ϵ

The barometer for ascertaining the degree of impact of the change in foreign assets on domestic assets is via a coefficient β so when β is equal to (-1) this means complete monetary sterilization, because the increase in foreign assets by one unit was offset by a decrease in domestic assets by one unit. And when β is equal to (0) this means that there is no monetary sterilization policy at all. But  if  the  value of  the  coefficient β is greater than (-1) β>-1 It means that there is an excess and exaggeration in the application of the monetary sterilization policy by the Central Bank.

The Method of Broad Money Supply

It is also a method similar to the previous one in measuring the degree of influence through the regression coefficient, but this method it focuses on the effect of the change in foreign assets on the broad money supply. The general form of this method in measuring the degree of monetary sterilization is as follows:

∆MS_2 =α+δ ∆NFA+ϵ

To check the degree of sterilization, we note the value of δ where it is between zero and one and if the value of δ is equal to zero, this means complete monetary sterilization because the change in foreign assets was not reflected in the broad money supply, meaning changes in the money supply as a result of foreign exchange shocks is equal to zero. And if it was greater than zero and less than one True indicates the presence of partial monetary sterilization, but if it was equal to 1 this means that the change in foreign assets by one unit increases the broad money supply by one unit and this means that there is no monetary sterilization policy by the Central Bank.

The Local Credit Method

According to this method, the degree of monetary sterilization can be measured by measuring the percentage change in domestic credit from the value of the change in the value of foreign assets, as it reflects the percentage of negative changes in domestic credits to positive changes in foreign assets and vice versa, i.e., the ratio of positive changes in domestic credits to negative changes in foreign assets to the existence of an active sterilization policy practiced by monetary policy in avoiding and isolating changes in domestic assets as a result of a change in foreign assets and also evidence of the existence of an independent monetary policy where we have the value W is negative in both cases, while if the value W positive, this is evidence of the absence of an active monetary sterilization policy, where positive changes in foreign assets led to positive changes in domestic assets at a rate greater or less than one, correct according to the following mathematical relationship:

W = ∆ DC/∆FR

The Foreign Reserve Ratio Method of the Monetary Base

Under this method, the degree of monetary sterilization can be measured through the following simplified mathematical relationship:

Y = FR/H

If the value of  Y is greater than 1 this means that there is a decrease in the size of the monetary base compared to the size of the foreign reserve and this reflects that the monetary base is not affected by the foreign reserves in the central bank and that there is a policy of monetary sterilization or isolating foreign cash flows from the monetary base and if the value of Y was less than one means an increase in the size of the monetary base compared to the size of the foreign reserve and this reflects the impact of the monetary base on foreign reserves in the central bank and there is no monetary sterilization policy or the isolation of foreign cash flows from the monetary base.

From the foregoing, we find that these different main methods of estimating the existence of monetary sterilization by the Central Bank or not is nothing but verification of the sterilization process in more than one direction, whether ratio or linear regression coefficient and the four methods will be applied in the Iraqi economy after taking the necessary data to measure The degree of monetary sterilization from the official website of the Central Bank of Iraq via the following link: https://cbi.iq/ page/79. The data that was adopted is included in a separate appendix, another research.

Monetary sterilization is related to the movement of the balance of payments, whether deficit or surplus and that the entry and exit of cash quantities from the local economy expands and reduces the money supply, if the surplus of the balance of payments causes an increase in the amount of money in the economy may prompt the central bank to withdraw monetization through the interest rate, which stimulates high interest entry New foreign assets into the local economy, which enters the economy in a vicious cycle, as well as when a deficit in the balance of payments causes a decrease in the amount of money in the economy, which may push the central bank to monetary expansion by reducing the interest rate, which drives the low interest to the exit of foreign assets from the local economy.

Therefore, monetary policy uses a set of measures to achieve the goal of monetary sterilization of local assets, represented in buying and selling foreign and local currency according to open market operations techniques, or withdrawing deposits from commercial banks and transferring them to the central bank, or increasing the legal cash reserve ratio in order to reduce local credits or reduce the value of the monetary multiplier. Which reflects reducing the value of the money supply to the monetary basis or encouraging domestic savings and reducing the volume of investment by raising the local interest rate despite the damages of this rise in the medium term. All of these measures monetary policy can follow for the purpose of neutralizing local assets from being affected by foreign assets.

The monetary control policy can be applied through refinancing, because banks and projects own a portfolio of financial assets (securities issued by the public sector) that can be liquidated and allow its holder to face the lack of liquidity. The severe supply of money in the central bank leads to bankruptcy in banks and projects, which rushes monetary policy towards the regulation of banking assets and the quantitative control of loans [12].

The Second Topic: The Analytical and Standard Framework of the Relationship Between Public Spending and Monetary Sterilization in the Iraqi Economy for the Period (2005-2021)

The Iraqi economy is considered one of the unstable rentier economies and the source of life for this economy is the oil market. Without this market, there is no life in the Iraqi economy, as well as the absence of an identity for this economy and a vision of defining the tasks, duties and role of the state, the market or the private sector in raising the efficiency of economic activity.

The foreign currency reserve is mainly caused by the movement of the balance of payments and the changes of this reserve result from the continuous external movement. The reserve exercises a central function which is the stability of the exchange rate of the local currency against the foreign currency. cover the expenses of the general budget. Also, the function of the foreign reserve is to meet the market’s need of the dollar and this falls within the framework of the new direction of monetary policy by the end of direct dealing with the needs of the general budget, i.e., the shift from financing the general budget deficit from the assets of the Central Bank of Iraq to financing restricted public spending in dinars against the dollar of the Iraqi Ministry of Finance [4].

One of the problems facing rentier economies related to fiscal policy and inflation is the improvement in oil prices, as this improvement leads to an increase in public spending and loss of control over it and the undertaking of expensive infrastructure projects that may be financed by foreign loans when there is a deficit in the state’s general budget. It fuels inflation and increases external indebtedness [13].

Therefore, because of the characteristics of the Iraqi economy, we always find a great increase in public spending on the side of the general budget and this spending expands the money supply due to the transformation of the dollar into a net dinar, in addition to being a total demand and monetization in the hands of individuals through the general budget technique. Changes in bank credit lead to changes in the monetary base and changes in the monetary base lead to changes in the money supply and changes in money supply must be identical with changes in domestic credit and the development of the balance of payments situation, which means a change in the value of foreign assets and therefore the expansion of bank credit through Borrowing from the Central Bank and commercial banks and in light of the decline in the flow of foreign assets and the decline in foreign trade exchange rates, this expansion leads to an increase in inflationary pressures and a budget deficit that is covered by deficit financing or inflationary financing, which leaves a growth in the monetary base [14].

As it is known that the Central Bank of Iraq cannot control foreign reserves because of its inability to control the demand for foreign currency (the demand of the private sector) and it cannot control the supply of foreign currency (the presentation of the Ministry of Finance). It is natural that an increase in demand over supply causes a shortage of reserves the foreigner with the central bank and vice versa.

The increase in demand for the dollar by the private sector or the state sometimes is not determined by the amount of oil sales, but rather the general budget deficit constitutes an additional pressure in the demand for the dollar because there is government spending covered by remittances, bonds and local loans from commercial banks and this pushes the increasing government spending towards increasing demand On the dollar and the payment of the obligations covered by the dollar and the occurrence of changes in foreign reserves. One of the main reasons for the increase in demand for the dollar is the large import of imported goods and services and the flight of capital due to political instability and corruption in public money and the transfer of corruption funds outside Iraq, in addition to the lack of medical and health services in Iraq and the increase in demand for these services from abroad, as well as the migration of numbers A large number of Iraqis due to sectarian violence and the transfer of their financial assets abroad [16].

The monetary sterilization will be estimated according to the above-mentioned four methods and the impact of public spending on some indicators of monetary sterilization will be shown, according to the following:

• First: The annual regression method. According to this method, the coefficient of β was estimated, which shows the regression of net domestic assets NDA According to changes in net foreign assets NFA and as follows:

∆NDA=α-β ∆NFA+ϵ

According to the outputs of the dialog box for estimating a linear regression of the level of monthly change in net domestic assets as a result of the monthly change in net foreign assets according to the method of least squares OLS, it became clear that the regression relationship between net domestic assets and net foreign assets was not significant, due to the insignificance of the regression coefficient, as it appeared (0.4042). Despite the negative reference to the parameter estimated according to the mathematical relationship above (337.7642-), as well as the insignificance of the estimated model if the value of F is not significant in the model and accordingly, it is not possible to rely on the results of this model to determine   the   existence   or   absence   of    the    case   of monetary sterilization conducted by the Central Bank of Iraq during The period from 1-1-2005 to 31-12-2021, as shown in Table 1 and Figure 1.

Table 1:      Results of Estimating the Linear Regression of Changes in Domestic Assets of Foreign Assets

Figure 1: Monthly Changes in Net Domestic and Foreign Assets

Source: From the researcher’s work based on E-VIEWS 12

• Second: The broad money supply method and according to this method, the coefficient of δ is estimated, which shows the decline in the broad money supply MS_2 According to changes in net foreign assets NFR and as follows:

∆MS_2 = α+δ ∆NFA+ϵ

According to the outputs of the dialog box for estimating a linear regression of the level of monthly change in the broad money supply as a result of the monthly change in net foreign assets according to the method of least squares OLS, it became clear the significance of the regression relationship between the broad money supply and net foreign assets, due to the significance of the regression coefficient, which appeared (0.0003) and that the sign Positive for the parameter estimated according to the mathematical relationship above (123.4717) as well as the significance of the estimated model if the value of F is significant in the model and that the value of the coefficient is greater than one is true and this is a standard  indication  that  there is  no monetary sterilization or isolation of the effect of the change in foreign assets from the local monetary changes carried out by the Central Bank of Iraq, meaning that the large monthly changes in the broad money supply are the source of the monthly changes in foreign assets during the period from 1-1-2005 until 12/31/2021, as shown in Table 2 and Figure 2.

Table 2:      Results of estimating the linear regression of changes in money supply for foreign assets

Figure 2: Monthly changes of broad money supply and net foreign assets

Source: From the researcher’s work based on E-VIEWS 12

• Third: The local credit method. According to this method, the percentage of W was estimated, which shows the percentage change in domestic credit from the change in foreign assets NFArand according to the mathematical relationship below. The outputs of this percentage are shown in the table numbered 3:

W=∆DC/∆NFA

According to this mathematical method and according to the results of Table 3, the number of months in which there is no monetary sterilization is 116, where the value of W positive, this is evidence of the absence of an active monetary sterilization policy, where positive changes in foreign assets led to positive changes in domestic assets at a rate greater or less than one. And the number of months during which cash sterilization was 87 months, where the value of W appeared negative. This is evidence of the existence of an active monetary sterilization policy, which reflects the ratio of negative changes in domestic credits to positive changes in foreign assets and vice versa, i.e. the ratio of positive changes in domestic credits to negative changes in foreign assets to the existence of an active sterilization policy practiced by monetary policy in avoiding and isolating Changes in domestic assets as a result of a change in foreign assets and also evidence of the existence of an independent monetary policy, where we have the value of W is negative in both cases (Figure 3).

Table 3: Percentage of the Monthly Change in Domestic Credit DC from the Change in Foreign Assets NFA in the Iraqi Economy 1-1-2005 Until 13-12-2021

Source: The table is from the researcher’s work based on the data taken from the official website of the Central Bank of Iraq and according to the following electronic link: https://cbi.iq/page/79

Figure 3: The percentage of the monthly changes in domestic credit from the monthly changes in net foreign assets

Source: From the researcher’s work based on E-VIEWS 12

• Fourth: The foreign reserve ratio method from the monetary base: according to this method, the ratio of  γ was estimated, which shows the percentage change in the cash reserve FR from the monetary base H and according to the mathematical relationship below. The outputs of this ratio are shown in the Table 4:

Y=NFR/H

According to this mathematical method and according to the results of Table 4, the value of Y  appeared positive and much less than one throughout the period from 1-1-2005 to 12-13-2021. This is evidence of significant expansions in the monetary base H As a result of the increase in net foreign assets NFR as a result of the surplus in the trade balance of the rentier Iraqi economy as a result of high oil prices and an increase in public spending as a financial trend that indicates lack of financial discipline in the general budget and this means the absence of an active monetary sterilization policy where positive changes in foreign assets led to larger positive changes in the monetary base or monetary basis It represents the source of monetary expansions in the Iraqi economy and what these expansions create from significant increases in the inflation rate, had the Central Bank not managed the exchange rate and calmed the inflationary expectations of individuals, as well as the availability of a commodity supply imported from foreign economies that is almost stable in inflation rates, at least for the greater part of the research period (Figure 4). 

Table 4: The percentage change in the net foreign assets (NFA) from the monetary base H in the Iraqi economy for the period 1-1-2005 until 31-12-2021

Source: The table is from the researcher’s work based on the data taken from the official website of the Central Bank of Iraq and according to the following electronic link: https://cbi.iq/page/79

Figure 4: Monthly Changes in the Ratio of Net Foreign Assets to the Monetary Base

Source: From the researcher’s work based on E-VIEWS 12

In summary, the four methods used in estimating the monetary sterilization, it became clear to us that there  are three methods (the second, third and fourth) that confirm the absence of a monetary sterilization policy carried out by the Central Bank of Iraq in return for the immorality of the first method.

• Fifth: Estimating the impact of public spending on the proportion of domestic credit to foreign assets.

Public spending in the state’s general budget is characterized by large booms due to the increase in public employment and the great demand for goods and services produced, whether consumption or investment, which leaves these large surges in public spending, which is sourced from the oil dollar obtained from oil exports, large increases in the money supply as an indication of the impact of public spending on foreign reserves and the money supply of which domestic credit is a part of and according to the outputs of the dialog box for estimating a linear regression of the percentage of domestic credit from foreign assets  for  public  spending  according  to  the method of least squares OLS, it became clear the significance of the regression relationship between the percentage of domestic credit from foreign assets for public spending, due to the significance of the regression coefficient at 10%, where it appeared (0.0642) and that the sign is negative For the estimated parameter (3.83-) The dialog box also indicates the significance of the estimated model if the value of F is significant more than 2 in the model and this means that the higher the monthly spending rates, the less the case of cash sterilization according to the local credit ratio of net foreign assets  and this confirms the weakness of the monetary sterilization operations conducted by the Central Bank of Iraq during The period from 1-1-2005 to 31-12-2021, as shown in Table 5 and Figure 5.

Table 5: Results of the linear regression estimation of the domestic credit ratio of foreign assets for public spending

Figure 5: Public Spending Changes and the Percentage Change of Domestic Credit from Foreign Assets

Source: From the researcher’s work based on E-VIEWS 12

• Sixth: Estimating the impact of public spending on the foreign reserve ratio of the monetary base

For the same reasons mentioned above about the impact of public spending in the general budget on the foreign cash reserve, which requires replacing  the  budget dollar with the central bank dinars and the lack of financial efficiency and discipline, we note the opposite effect of public spending on the proportion of foreign reserves from the monetary base and according to the outputs of the dialog box for estimating a linear regression of the proportion of net foreign assets from the monetary base of public spending according to the method of least squares OLS, the significance of the regression relationship between the proportion of net foreign assets from the monetary base of public spending was clear, because of the significance of the regression coefficient at 5%, where it appeared (0.0007) and that The sign is negative for the estimated parameter (1.59-) The dialog box also indicates the significance of the estimated model if the value of F is significant more than 2 in the model and this means that the higher the monthly spending rates, the less the case of monetary sterilization according to the percentage of net foreign assets from the monetary base of public spending and this confirms the weakness of monetary sterilization operations conducted by the Central Bank Iraqi during the period from 1-1-2005 to 31-12-2021, as shown below in Table 6.

Table 6: Results of estimating the linear regression of the foreign reserve ratio from the monetary base of public spending

Table 6: Monthly Public Expenditure in the Iraqi Economy for the Period 2005-2021

Source: The official website of the Central Bank of Iraq (https://cbi.iq/page/79).

• The shift in the behavior of the Central Bank of Iraq from the policies of financing the budget deficit to the policies of financing public spending confuses the monetary sterilization operations carried out by the Central Bank of Iraq

• Despite the central bank’s use of monetary sterilization tools represented in the rediscount rate, the legal cash reserve ratio, open market operations, the external sterilization tool and the foreign currency sale window, the central bank has not succeeded in achieving monetary sterilization of domestic assets by isolating changes in foreign assets from the basic cash

• Weak fiscal discipline and the technical and distributive efficiency of public spending caused a significant expansion in the narrow and broad money supply

Recommendations

• Establishing a sovereign fund for the financial surpluses realized from the rise in the price of oil above the speculative price of the general budget with the aim of neutralizing the impact of changes in foreign reserves generated by the rise in the price of oil from affecting the local currency

• Adopting a new approach in the general budget that is an alternative to the item budget approach, with the aim of raising the technical and distributive efficiency of public spending

• Diversify the sources of national income for the Iraqi economy in order for diversification to serve as a financial buffer for fluctuations that occur in the Iraqi economy as a result of fluctuations in the oil market and the resulting undesirable financial shocks in the state’s general budget

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Supplement Table: Supplement to the monthly data on monetary and financial variables used in scientific research for the period 2005-2021

Source: The official website of the Central Bank of Iraq (https://cbi.iq/page/79).