The Role of Fiscal Policy in Treatment Stagflation in Iraq Standard Study for the Period 2003 - 2020

Ameen Fahad Jayed

Iraqi Ministry of Education, Iraq

*Corresponding Author

Ameen Fahad Jayed

Article History

Received: 10.09.2022

Accepted: 10.10.2022

Published: 20.10.2022

Abstract: The Iraqi economy has been suffering from the phenomenon of stagflation for many years as a result of wars and political and economic fluctuations that the country has witnessed. The Iraqi government is trying to take the necessary measures, and through the important and effective role of fiscal policy in regulating economic activity, to address the phenomenon of stagflation through its well-known tools.. The current study sought to explore the impact of fiscal policy in treatment the phenomenon of stagflation in the Iraqi economy during the period (2003-2020) and to show the effectiveness of its tools based on the main premise that fiscal policy plays an important role in addressing stagflation in Iraq, as data analysis was conducted Regarding the variables, standard analysis and its tools such as multiple linear regression were used after testing the stability of the time series through the program (Eviews.12) in estimating the effect of financial policy tools in treatment this phenomenon in Iraq The study found that there is no clear correlation between the variables of the study, and that the policy did not play an active role in addressing the recessionary inflation in the country due to several factors, and recommended the need to promote the optimal use of fiscal policy instruments and increase the effectiveness of performance in order to stimulate the economy and get rid of the stagnation affecting the economy in the country.

Keywords: fiscal policy, stagflation, public expenditures, public revenues, debt