A study at the College of Administration and Economics at the University of Karbala discussed the role of the commodity-monetary economic balance of the open economy in some indicators of economic stability – experiences of selected countries with special reference to Iraq.
The study presented by student Mohsen Khudair Abbas aimed to explain the role of balance in the commodity and monetary markets and the external balance and its impact on indicators of economic stability (unemployment, inflation, and output) by demonstrating the possibility of achieving balance in the commodity market and the money market through the relationship between interest rates and income. .
The study found that there was a fluctuation in investment rates in Iraq between rise and fall before and after 2003 due in part to high interest rates.
The study recommended the necessity of working to reduce imports as they are one of the elements of income leakage, which constitutes a current account deficit. Therefore, the state must achieve an internal balance between aggregate supply and aggregate demand.
