Political stability is one of the important indicators for the realization of economic development and prosperity in all governments. In the case of Iraq, it is concluded that political stability has a decisive role in forming the government's economic policies, and during the period of political instability, there were negative effects on Iraq's economic policy. This research, with a historical review method, aims to investigate the political effects and successive crises that came to the country of Iraq. One of the results of this research is that by making hasty and temporary decisions, the failure of Iraq's development plans continued and the development that was based on national political principles caused Iraq to enter into successive wars and destroy Iraqi infrastructure and disrupt The production process and the increase in unemployment rate and the spread of poverty in all strata of the society, which made the deterioration of security in Iraq a problem; Therefore, after 2003, Iraq's economy followed a Venezuelan erosion process, which led to the paralysis of economic joints and disturbance in the general life process of different sections of the society. The important point was the weakness of the Iraqi economy, which did not respond to the ambitions of the governments that were elected through economic rationing, and this shows that political instability plays a role in shaking the foundations of macroeconomic policies.