Abstract
extractIraq one of the countries whose banking system is often exposed to certain disturbances due to the weakness of the monetary mechanisms used in managing these crises or the weak performance of that device in activating early warning indicators on the effect on inflation. Therefore, the research came to aim at analyzing the development of these indicators and their quantitative relationship in the inflation. For the period (2006 - 2020), using the Autoregressive Distributed Time Gaps (ARDL) model, the research reached a set of conclusions, the most important of which was the weak impact of early warning indicators on the inflation, which indicates the weak effectiveness of the Iraqi banking system despite the high Ratios of capital adequacy and asset quality, which is not commensurate with the requirements of the current stage.
