PDF Donwnload.pdf

The macro prudential policy plays a crucial role in reducing the negative effects of crises on economic stability, and its importance emerged after the global financial crisis of 2008. The policy aims to secure and flexibilize the banking system, enabling it to face unexpected economic shocks. In Iraq, the economy has been exposed to internal and external complex shocks, leading to distortion of the production structure, increased unemployment and poverty rates, budget deficits, and an imbalance between savings and desirable investment. The research highlights the role of macro prudential policy in achieving financial stability in Iraq, analyzing its reality, developments, and effectiveness in enhancing financial and monetary stability. The study relies on a descriptive-analytical approach, covering the period from 2003 to 2020, and is divided into three axes: research methodology, theoretical framework, and prudential policy in Iraq. Previous studies have shown the significance and impact of macro prudential policy tools on credit indicators and financial stability. The research aims to answer the question: "What is the ability of the precautionary policy to achieve financial stability in Iraq?" and concludes with a set of conclusions and recommendations. Key words: Macro Prudential Policies, Financial Stability, Budget Deficits, Monetary And Financial Policies, Economic Shocks.