Macroeconomic stability is a prerequisite for economic growth and development. Effective macroeconomic management is the key to achieve stability. The developments in the last decade have caused a change in the prevailing perceptions in the world about the nature of desirable macroeconomic policies. It also led to developing it within a coordinated framework, whereby the fiscal and monetary policies, the local currency exchange rate policies and the management of the capital account in the balance of payments are compatible with each other. It presents a framework that organizes macroeconomic strategies, public spending, stabilizing livelihoods, creating job opportunities, and reducing poverty levels.

The problem of poverty is one of the most serious problems that could economically and socially affect building development, due to the serious economic and social consequences associated with it. The research problem is represented in the main question, namely “To what extent the economic variables represented by the unemployment rate, inflation, GDP, exchange rate, and money supply affect the poverty rate in Iraq?). The research problem can be determined in the light of the main questions, namely:

Q1: What are the analytical bases for the relationship between economic variables and the poverty rate?

Q2: What are the effects that economic changes can have on the poverty rate?

The current research fall into three sections: The first section includes the theoretical rooting of macroeconomic variables and poverty (according to an analytical perspective). The second topic dealt with measuring the relationship among some economic variables and poverty rate in Iraq. The third topic dealt with visions and solutions to reduce poverty rates in Iraq. Conclusions and recommendations have been reached.