What Monetary Regime for Post-War Iraq?

1. What type of monetary regime did Iraq have from 1982 to 1998? What was the main advantage of this regime for the country?

2. What does the author of the article see as the main objective to be sought by a new monetary regime? Do you agree? Why?

3. According to the article, what important public finance issue will influence Iraq’s choice of monetary regime? Why?

4. What is a currency board and how does one work? Why did Argentina’s currency board fail? Would you recommend that Iraq adopt a currency board? Why?

5. What are the pros and cons of a managed currency peg (or a managed float) and of inflation targeting? Do you recommend that Iraq adopt either of these monetary regimes? Why?

Source: “What Monetary Regime for Post-War Iraq?” Mark M. Spiegel, Federal Reserve Bank of San Francisco FRBSF Economic Letter, No. 2003-13, May 9, 2003, pp. 1-3.