BAGHDAD - Hassan Al-Rubaie
قال . Ibrahim Musa Roses teaching in the Faculty of Administration and Economics University of Baghdad that inflation disastrous results reflected on the life of the community, compounded by uneven and generate incomes and reduction in the level of operating capacities and thereby diminishing employment opportunities, and unemployment rates are an economic indicator, which reflects the good performance of the economic policy of the government The trends economics
ود.He added in a lecture he delivered in a specialized symposium on the effects of inflation and its impact on the economic situation of living that is durable swap between the inflation rate low and the unemployment rate is high and vice versa and that the stability and growth not only bring in a stabilization of cash.
وأن.
And the case is the cause of the continuous rise in prices is enormous and significant expansion in the money supply in quantities greater than demand plus Nakecudi that the model must be based on a function of the stable cash balances real and such stocks is supposed to be a function of the level of real income and the opportunity costs retention money.
ولذلكومن أبرزها:He therefore called roses to the study and analysis of inflation in the light of the structural composition of the national economy should be seen as a result of the limited number of bottlenecks and constraints in the national economy which is imperative in any economy trying conditions to grow rapidly in the presence of bottlenecks or restrictions, most notably :
-عدم.- Inelastic supply of food due to increased demand, which can, for example, secure the agricultural sector due to structural constraints of this sector and could not respond to requests broad result of high demand.
-قيد.-
Under the foreign currency shortage great sense and not available to cover imports due to serious shortage of production and the risk rises in the material and the lack of balance in the balance of payments paid to ease its currency and the increase of inflationary pressures.
اما..The third limitation is associated with the lack of internal financial resources (budget deficit) any inadequacy in government revenue to offset the growth rates and spending ..
.
Roses also stressed that the ways and means of addressing a result of inflation, which causes many to be linked to the expansion of the money supply, achieving economic stability must be cemented through the building and the Iraqi monetary unit value (the dinar) at the foreign currency exchange rate and strengthen and reduce inflation only with controlling transnational phenomenon and monetary stability monetary growth to achieve economic stability. It is the responsibility of monetary policy, which should make the system more flexible exchange system from its current working towards gradual ascent for the benefit of the Iraqi dinar what ultimately creates a stable economic climate provides prosperity and optimism and growth of the Iraqi economy,
it is understood from the analysis of Dr. Ibrahim Roses that with the procedures the Central Bank to strengthen the value of the dinar Iraqi against foreign currencies.
Translated version of http://www.alsabaah.com/