Effects of Monetary and Fiscal Policies on Economic Growth: An Empirical Study On The Iraqi Economy

The purpose of the study is to explain the effects of monetary and fiscal policies on economic growth in Iraq. The dependent variable is the economic growth rate, and independent ones are exchange rate, inflation, M2 as a monetary instrument, while public debt, public expenditure, and government revenue are as fiscal instruments. The data were obtained from the Central Bank of Iraq and covers the period of 2005-2019. ARDL Bound Test and OLS were used to estimate the effects of monetary and fiscal policies on growth respectively. As for monetary policy, the results revealed that the exchange rate harms economic growth, while inflation and money supply positively affect economic growth. In terms of fiscal policy, the effects of government debt and government spending on growth seemed to be negative, while government revenues seemed to be positive