The role of monetary policy in controlling the rate of inflation in Iraq (2004 - 2020)

This dissertation demonstrated the part of monetary policy in regulating the inflation rate in Iraq. To attain this purpose, a modeling technique of the Autoregressive Distributed Lagged (ARDL) approach has been used, and Monthly information has been collected for the period (31/12/2004 to 31/7/2020). Hence, the outcome of the unit root test for stationary implies that the inflation rate is stable at the level, and other variables are stable at the initial alteration. However, the Johansen Co-integration Test result reveals the relationships between the inflation rate and all changes for the far future. Moreover, the Granger causality outcome shows two-direction causality among narrow money supply and exchange rate granger causes inflation rate. Unidirectional granger connection between inflation rate granger causes board money supply as well as the interest rate. Finally, the outcome of the (ARDL) model reveals that the money supply, as well as exchange rate, is significant and favorably linked to inflation. The conclusion is that a rise in the money supply and exchange rate causes Iraq to experience severe inflation. The interest rate has an essential and contradictory association with the interest rate as well as the inflation rate in Iraq. It specifies that a rise in the interest rate causes a reduced inflation rate in Iraq.