The Impact of Monetary Policy on some Macroeconomic Variables in Iraq

Abstract

The Research aims analyzed the nature of the relationship between monetary policy indicators represented by (money supply, interest rate, exchange rate) and its impact on some macroeconomic variables represented by (real GDP growth rate, average per capita GDP, inflation rate, net current account of the balance of payments ) in Iraq for the period (2004-2022) to determine the short-term and long-term effect between them, as the stability of the time series of the study variables was tested, and then the functional relationship between them was estimated based on the Autoregressive Distributed Delay (ARDL) model, and the results showed a relationship between most Monetary policy indicators and macroeconomic variables in the short term, but in the long term, the relationship was present between the independent variables and three of the macroeconomic variables (real output growth rate, inflation rate, net current account in the balance of payments) and its absence with (average per capita share in Gross Domestic Product) with conducting all the tests related to the quality of the estimate, especially the statistical and standard tests, and the extent to which the results correspond to the economic theory, and the research reached the conclusion that there are effects of monetary policy on the macroeconomic variables in Iraq.