Abstract
Many countries around the world suffer from weak monetary policy performance, particularly its indirect tools, and Iraq is no exception. Therefore, the importance of this study lies in the role monetary policy plays in maintaining the general price level by influencing the money supply.
From this standpoint, the research aims primarily to know the impact of monetary policy, represented by its indirect tools, on the money supply and inflation, using the descriptive analytical method according to the (deductive) approach from the general to the specific.
The most important finding of the research is that there is a relationship between indirect monetary policy tools and the money supply in most years. The results also showed that in some years the money supply was ineffective in inflation rates, and therefore we accept part of the hypothesis adopted by the researcher in the research.