Ali Abdul Kadhim Daadoush – Ph.D. in the Economics/University of Baghdad
Executive summary
Government funds in Iraq make up more than (90%) of the available, Therefore The government’s central treasury is the Ministry of Finance, which dominates the economy, making it difficult to issue long-term tools.
The issuance of some tools – in addition to certificates of deposit to Islamic banks – did not work; Because interest doesn’t work in the Iraqi economy as long as there isn’t a powerful private sector that indicates how the money will be operated, unlike a government that owns the money.
If the budget is not approved for the current year, Iraq will be directly vulnerable to recessionary inflation, especially since meeting the needs of members of society for various goods and services comes through imports.
There is a need to expedite the legislation of the Sovereign Fund Act and to give the private sector – with the support of the Government – the opportunity; To promote the realities of the Iraqi economy, in particular, the industrial sector, and the provision of an integrated industrial city.
Introduction
Economists, bond analysts, and investors are making great efforts to provide a clear vision and interpretation of the profits Curve; Because the curve is one of the most prominent concepts that give information, the process of forecasting the economy in terms of output, economic growth and the future of the economy in terms of inflation, recession, or recession inflation? Therefore, economists (observers of markets and economies) seek to explain profits curves using a set of globally accepted theories and hypotheses; to reach the future outlook of different economies.
The profits curve is of great importance; Because it’s about knowing the state of the economy, if the interest (yield) of short-term bonds is lower than the yields of long-term bonds, this is an indicator that grows the economy at a normal rate, which is an attraction for investors to increase their investment, but if it’s the opposite, Short-term bond yields are larger than long-term yields, this is an indicator that suggests the economy is in recession, but if short- and long-term bond yields are getting closer to each other, it means transition fun. (somewhat opaque to investors), another type of profits curve exists, with profits high as the curve rises to a peak in the medium term, then slopes down at longer maturities, and then returns to rise.
Most of the money generated in Iraq from the export of crude oil: the central treasury of the government represented by the Ministry of Finance dominates the economy, making it difficult to issue long-term tools, and with the issuance of some tools – in addition to certificates of deposit to Islamic banks – they have not worked; Because interest does not work in the Iraqi economy, as well as the weakness of the private sector and the stock market, which indicates how private funds are used, unlike a government that uses the money completely freely leading to what is known as (the financial dominance of the government).
