The effect of money supply on the gross domestic product in Iraq for the period 2005-2020


The money supply is one of the basic monetary variables because of its importance in directing monetary policy to achieve economic stability. This research dealt with the impact of money supply on the gross domestic product in Iraq for the period (2005-2020). The aim of this study is to identify the reality of the two variables and to measure and analyze the impact Presentation of money on the gross domestic product in Iraq. Standard model tests were conducted using the (Eviews 10) program, including the stability test using the expanded Dickey Fuller test (ADF) and Philips-Perron (P.P), and the co-integration test was used to estimate the long-term relationship and the regression model. The subjective variable (ARDL) to measure the short-term relationship between the variables, the money supply as an independent variable and the gross domestic product as a dependent variable were adopted in this study. The study concluded that there is a strong statistically significant relationship between the two variables according to the results of the short-term relationship (ARDL). The absence of a long-term equilibrium relationship between the two variables, and the study recommended to control the size of the monetary supply by controlling the volume of public government expenditures of the state that significantly affect the size of the money supply and thus negatively on the Iraqi economy.