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September 16, 2025KnE Social Sciences0 citationsOpen Access

Analyzing and Measuring the Relationship Between the Monetary Supply and the Inflation Rate in Iraq for the Period (2004–2023)

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KAKhalid Rokan AwadMUMustafa Mohammed Ubaid

Key Points

  • The research finds that changes in the monetary supply directly affect the inflation rate in Iraq.
  • Data analysis revealed that hyperinflation erodes purchasing power, impacting the economy and citizens negatively.
  • Econometric models were utilized to assess the relationship between monetary supply and inflation rates effectively.
  • Implementing flexible monetary policies could help combat inflation and stabilize the financial system in Iraq.

Abstract

The research aims to analyze the impact of changes in the money supply on the inflation rate in Iraq, in light of the economic challenges facing the country, which affect the stability of the financial system. This is done by analyzing data and using appropriate econometric models, as well as understanding the impact of the monetary policy pursued by the Central Bank of Iraq on the inflation rate. The research concluded that hyperinflation leads to the erosion of the purchasing power of the local currency, which negatively affects citizens and the economy in general. The research recommended the need to control interest rates and regulate the size of the money supply to combat inflation more effectively, along with the need to implement flexible monetary policies that respond to economic changes.

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Cite This Study

Awad et al. (2025) studied this question.

synapsesocial.com/papers/68d454d831b076d99fa5a94ehttps://doi.org/10.18502/kss.v10i19.19624
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