Determinants of Money Supply in Light of Price Changes in Iraqi Economy: (1990 – 2014)
DOI:
https://doi.org/10.1956/jge.v13i2.458Abstract
This research addresses the main factors that determine Iraqi money demand for the period of 1990- 2014, in light of continuous price changes as an appropriate approach to find effective monetary policy. The research problem was crystalized in the following questions can we estimate the function of money demand in the Iraqi economy with accordance of economic theories?. An assumption stating that price changes are among the most important factors determining money demand function in Iraqi economy was adopted. It was found, using descriptive analysis of data available on economic variables that express money demand and its determinants (Non-petrol GDP, CPI, and interest rate) and the use of modern econometric techniques. And finally, after estimating money demand function of Iraqi economy, it was found that there is an important role of what is going on in price changes in money demand volume for the studied period, which confirms the hypothesis, due to exceptional conditions through which Iraqi economy went, and still suffering their consequences including wars, financial crisis, and fluctuations in petrol prices, which emphasizes the importance of conducting research and studies on money demand and its determining variables on a continuous basis to ensure the success of monetary policy in achieving its objectives.References
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Yahya, W (2001), Monetary Theory: Theories, Institutions and policies, Dar Alkutob Publishers, Mosel University.
Yamane, T. "Statistics, an Introduction Analysis," Harper and Row, New York, and John Wetherill, INC., Tokyo 3rd edition.
Al-Janabi, H., and Arsalan, R. (2009), Money, Banks, and Monetary Theory, Amman, Dar wael publishers.
Atiah, A., (2004) Advanced in Econometrics: Between the Theory and Practice, Al Iskandara, Addar Al – Jamieah, 4th edition.
Attu, S. (1999), The Role of Monetary Policy During Economic Sanctions, and Financial Reform after it, Journal of Economic Studies, Baitul Hikmah Baghdad, pp 57.
Aziz, M., Abu Sneineh, M. (2002), Economic Principles, Benghazi, Garyounis University.
Bank of Japan, (2003) The Price Stability Target Under the Frame Work for the Conduct of Monetary, p1-3.
Central Bank of Iraq (2003-2014) Annual Report, Baghdad, General Department of Statistics and Researches.
Central Bank of Iraq, Basic Financial Indicators 2015, Baghdad, General Department of Statistics and Researches.
Central Bank of Sri Lanka, Price Stability, Pamphlet Series No. 1, p2.
Cheryl, E. (1997), "Open Market Operations in the 1990s†Federal Reserve Bulletin, November 1997.
Ireland, P. (2005), "The Monetary Transmission Mechanism†Federal Reserve Bank of Boston, working papers no.06-1 November 2005 p 1.
Ireland,P.,N.Lecture Notes on Money Banking and Financial Market:The Tools of Monetany Policy, chapter 17,p1.
Khaleel, S. (1994), Modern Macroeconomic Theory, 2nd edition, Kuwait.
Khazraji, T., and Mendlawi, A. (2005) “The Ability of Monetary Policy to Encourage Local Investment in Iraq for the Period (1980 – 2003),†Journal of Administrative and Economies studies, 40(11), 12.
Koutsoyiannis, A. (1977), Theory of Econometrics, Hong Kong, 2nd edition.
labonte, M. (2013), "Monetary Policy and the Federal Reserve: Current Policy and Conditions,†Congressional Research Services 12.
Mishkin, F. "Macroeconomics: Policy & Practiceâ€, USA Pearson, University Columbia, p309.
Saleh, M. (2008), “Monetary Policy of the Central Bank of Iraq and the Requirements of Economics Stability and Growth,†Iraqi Journal of Economic Sciences, al – Mustansiryah University, (18) 12.
Shihah, M., (1996), Economies of Money and Banks, Al – Marifah Al – Jameiah Publisher, 6th edition.
Stephen, G. (1997), "The Evolution of Monetary Policy: From Money Targets to Inflation Targets" Bank of Australia, p.128.
Stephen, H. and Wilcox, J. (1989) "The Long-Run Determination of the UK. Monetary Aggregates†.Bank of England Discussion (London).
Tobin, J., Monetary Policy, The Concise Encyclopedia of Economics.
Yahya, W (2001), Monetary Theory: Theories, Institutions and policies, Dar Alkutob Publishers, Mosel University.
Yamane, T. "Statistics, an Introduction Analysis," Harper and Row, New York, and John Wetherill, INC., Tokyo 3rd edition.
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Published
26.06.2017
How to Cite
Al-Shami, S. and Al-Rubeiey, Q. (2017) “Determinants of Money Supply in Light of Price Changes in Iraqi Economy: (1990 – 2014)”, Journal of Global Economy, 13(2), pp. 83–103. doi: 10.1956/jge.v13i2.458.
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