Muthanna Mayoof Mhmood, Hameed Hasan Khalaf, Omar Abdullah Mohammed
In comparison to the past, the 2010-2018 global financial crisis has given many developing countries the legitimacy and capabilities to adopt countercyclical policies. It made them better confront the global downturn and thereby comply with the developing countries. This paper documents policy responses and explores additional factors that allow these countries to withstand negative external shocks partially. The following characteristics include: i) monetary and exchange policy, (ii) fiscal policy and (iii) internal and external financial positions. This Paper analyses the economic situation at home and around the world, evaluates inflationary trends and their viewpoints, and examines the reasons for monetary policy decisions in a straightforward manner. At the international level, in part due to lower oil prices and moderation of economic growth, inflation moderated during the first quarter of the year, in some of the world's leading economies. There is still inflation in advanced economies, which helps them to delay their monetary policy mechanism for a while. The implementation of the monetary policy therefore refers to the selection of the inflation target for medium-term reasons and is consolidated by the effectiveness of a flexible rate regime; using financial control tools of indirect value (MSO) and using indicative variables which favor the decision of the market as well as by reinforcing the monetary policy. In contrast to the past, many emerging countries faced the 2008-2009 global financial crisis with the credibility and capacity required to conduct countercyclical policies. This allowed them to better cope with the decline and thus behave in a similar way to developed countries.