The Impact of the Monetary Illusion of Inflation on the Accuracy of Financial Forecasting and the Effectiveness of Management Decisions, Both Administratively and Financially

This research aims to study The impact of the monetary illusion of inflation on the accuracy of financial forecasting and the effectiveness of management decisions. Administratively and financially. The research highlights The illusion of monetary value, as a cognitive bias, causes individuals to ignore the decline in the purchasing power of currency during inflation, treating the increase in figures as an increase in real wealth. The accuracy of financial forecasting is the degree to which future projections of profits, sales, and cash flows are approximate. By improving Profit distribution policies and product pricing. One of the key findings was that companies that adopted policies promoting gender diversity showed 18% better financial performance in terms of returns. The study also revealed that company size influences its ability to promote gender diversity, with larger companies being more effective in implementing gender diversity within their management teams. Recommendations This includes strengthening supportive policies .To study forecasting accuracy and avoid errors that occur in inflation forecasting with monetary illusion, estimating real profits, improving opportunity cost, big data capacity It is also recommended to develop government legislation to support Financial forecasting and finding appropriate solutions Companies must also disclose data The real To improve transparency and build trust with investors. The significance of the impact The financial illusion caused by inflation is significant in nature for planning work and, practically, from both an administrative point of view as well as financially. The promotion of companies to sustainability in the Iraqi market.