Measuring and Analyzing the Money Supply Relationship with Some Macroeconomic Variables in Iraq for the Period (2004-2016)

Abstract

The study aims to measure and analyze the money supply in Iraq, and determining the variables affecting it such as GDP exchange rate, inflation rate, unemployment rate and government expenditure for the period 2004-2016 .The standard model was built on quarterly data using Eviews9. The correlation between the study variables as well as the causal relationship between the variables of the study and the existence of a causal relationship between the supply of cash that causes the GDP. The causal relationship between the money supply and the government expenditure. The exchange rate and the absence of causal link between the money supply Rates of inflation and unemployment. According to the estimates of the short-term relationship, it became clear that the relationship between the supply of cash & GDP, the unemployment rate & the inverse relationship between the supply of cash, the exchange rate, the rate of unemployment, government spending either in the long-term relationship was a positive relationship between the supply of money and each of the GDP. The rate of inflation & the exchange rate & the inverse relationship between the supply of cash and both the rate of unemployment and public expenditure.