The Effects of Monetary Policy on Economic Growth in Iraq (2004-2020)

Abstract

This study aims to evaluate monetary policy with measuring its effects on the economic growth in during (2004-2020). To achieve this goal, the study relies on the descriptive and analytical approach using time series data, and by applying the (ARDL) method, and it has reached several conclusions. The most important one is that there is a positive relationship between the money supply (M2) and economic growth. Also, there is a positive but weak relationship between the interest rate and economic growth, while a negative impact through the interest rate on the growth have been found. The study sheds light on the concerns about the instability of the monetary system as a result of fluctuations in oil revenues and the value of the US dollar. Accordingly, it is necessary to enhance the credibility of the Central Bank and conduct the integration and alignment of monetary policy with other economic k to avoid complete dependence on oil ذ policies such as fiscal policy, trade policy and others, and wor revenues.