Money Supply and Its Effect on Inflation: Analysis Study on Iraqi Economy for period 2000-2017
Author: Hazzaa D. Salman , Ahmed S. Mutlag
Download PDF
Absrtact
Over the past decades, the Iraqi economy has undergone significant political developments that have had their effects on various aspects of life, including the economic aspect. The Iraqi economy has witnessed fluctuations in many economic variables depending on the political reality and the surrounding circumstances. Despite all these developments and divergences in economic policy trends and the use of their instruments, the common denominator over the past years was to increase the volume of cash flow and increase inflation rates. Iraq witnessed a rise in the general level of prices throughout the nineties of the last century and the first two decades of the current century was a kind of creeping inflation that was characterized by continuity throughout the study period.
Hence the importance of research to find out the relationship between the offer of money and inflation, and if this relationship is an obvious issue of most economic thinkers and monetary policy, then why the monetary policy in Iraq insists on the new issuance of the currency, which is a key factor in inflation, The salaries and wages of the employees of the state and the public sector, with all the increase in total demand, in return for the decline in the contribution of the economic sectors, the deterioration of the productive apparatus and the poor efficiency of its performance in general.