The impact of the growth rate of money supply on inflation in Iraq for the period (1990-2017)‎

Abstract EN

Money offer or money supply means the amount of payment methods available in the society, i.

e.

, the sum of money of all kinds, which are present in the society within a certain period of time and consists of the currency of circulation and bank money.

The Iraqi economy during the period of research (1990-2017) witnessed a large increase in the monetary issue, which crystallized in increasing the volume of money supply, and was reflected in the general price level and the decrease in purchasing power of the Iraqi dinar.

This increase in money supply was due to the continuous acceleration in the practice of cheap monetary policy.

Through the mechanism of linking the expansion of the width of the cluster on the one hand and the widening of the deficit in the budget on the other.

The study dealt with five topics, the first topic is the methodology, the second is an overview of inflation through the definition of inflation and its types and the economic and social effects resulting from it, the third topic illustrates the relationship between inflation and the presentation of money through statistical indicators of inflation and the average annual presentation of money, the fourth topic is the standard aspect of the relationship between inflation and money supply and the last topic concludes the conclusions and recommendations which confirm that unjustified government spending and misguided economic policies have had a significant impact on increasing inflation rates.

Therefore, the tools and methods used by the Central Bank of Iraq should be reconsidered to reduce inflation rates and develop banking awareness for the safety of the Iraqi economy.