ABSTRACT
This chapter explores the use of model simulations, the problems involved in pursuing the first policy option in the conduct of stabilisation policies. It provides an examination of the influence of the export sector on the other sectors of the economy within the framework of the complete macroeconometric model. The chapter shows the sensitivity of instability from the indices made by J. D. Coppock who found the correlation coefficients for the log-variance index. The impact of export instability could also be manifested in the form of increased fluctuation of economic variables as measured by the standard deviations of the variables concerned or the change in the growth path of the economy. Since the export sector plays such a prominent role in the Iraqi economy, it is obvious that the policy makers have shown a deep interest in exploring the characteristics of the Iraqi export sector.
