THE ACTIVE ROLE OF MONETARY POLICY AND FISCAL POLICY UNDER THE DOMINION OF GLOBAL ECONOMIC (ESPECIAL SIGHT TO IRAQI ECONOMY).

The present of monetary policy and fiscal policy is very necessary although the Monetarists School stresses in the importance of monetary policy more than the fiscal policy. The fiscal policy is unrealistic to effect in economic activity and it depends on the political and social effect.Although these economic justifications, the allocation function to economic resources are not solved especially that about social goods and distribution they cannot prepare without fiscal policy. The fiscal policy through expenditure government and tax policy minimize the gap between social classes in addition to the above tools; fiscal policy is used as a tool to stabilize the prices especially the basic prices of the goods. From these determents above the research problem is following ((the monetary policy cannot omit the fiscal policy role and the monetary policy loosed its efficacy because absent of real sector (real goods and sector) that subsides the price stabilization policy which is the basic target to central banks is the world. When we search in depth of monetary policy activity and fiscal policy activity and the conflict of monetary with fiscal policy and the agreement of monetary policy and fiscal policy in sometimes, the research reach to a major recommendations as followings: 1.Activating the instrument of fiscal policy tools at the local and international level in economic recession countries in order to overcome the problem of economic recession because the world live international economic exchange stage. 2. Find international monetary programs through international monetary fund to reduce the economic fluctuation that plaguing the global economy as a result of fluctuation of American economy. 3. Activation of quantitative and qualitative tools of the Iraqi central bank rather than on the exchange rate tool 4. Fiscal and monetary policy ensures the coordination of central bank in dependency instead of dependency on fiscal policy and its un-rational expenditure.