Measuring and analyzing the transition of the exchange rate impact upon the economic stability in Iraq for the period (1995-2018)

Authors

  • Hussein Ali Oweish

Keywords:

GDP, monetary supply, scientific

Abstract

The research focuses on measuring and analyzing the transmission of the exchange rate effect on the variables of economic stability for the duration (1995-2018) and using the statistical analysis program reviews 8. It provoked a wide debate between the scientific and economic circles. The effects they have on macroeconomic variables such as GDP, inflation and the presentation of cash in a narrow sense in order to reduce the negative effects of exchange rate fluctuations on some macroeconomic variables related to economic stability. The correlation between the dependent variable (exchange rate) and independent variables (GDP, inflation, narrow cash offer) shows that the correlation between the exchange rate. The narrow monetary offer is the only relationship that is strong and reversible and with a value of 0.707.). While the rest of the correlation between the exchange rate and other independent variables did not exceed the average and valued at (0.404-) and the rest of the relations are less so the relationship of the exchange rate to economic stability was weak and expelled (0.318). This requires a flexible monetary economic policy to cope with the shocks that may occur as a result of the transition of impact on the macroeconomic level. The increase in the monetary supply does not keep pace with the increase in GDP in Iraq.

Published

2021-09-10