Measuring and Analyzing the Effect of Intermediate Channels of Monetary
Policy on the Growth of the Iraqi Economy by Using Model Autoregressive
Distributed Lag (ARDL) for the Period (2004-2017)
Nazar Kadhim Sabah Al-Khaykanee
Ammar Abbas Hadi
AL-Qadisiya University / College of Administration and Economic
Department of Economic
| Corresponding Author: Nazar Kadhim Sabah Al-Khaykanee Ammar Abbas Hadi |
Abstract:
Monetary policy leads an important role in the influencing on the economic growth. This effect is usually uneven
among countries according to the nature and degree of progress of the economic system, as well as the independence
of the central bank and the monetary tools that is used. This research came to study the effect of the monetary policy
channels (the money supply channel, the exchange rate channel, and the interest rate channel) on the growth of the
Iraqi economy represented by the GDP during the period (2004-2017), This period witnessed a fundamental change
in policy work after the Central Bank obtained complete independence in 2004 accordance with Law No. (56), in
order to achieve this, modern statistical programs have been adopted to measure and analyze the impact of channels
on economic growth by using annual quarterly data by (56) views. The research also concluded quantitatively that the
effects of the intermediate channels of monetary policy were strong and positive in the growth of the Iraqi economy in
the short term, while the effects are weak in the growth of the Iraqi economy in the long term. Due to the structural
imbalances and the oil nature for the Iraqi economy and economic policies followed, as a result the focus has been
placed on a set of recommendations including the need to coordinate monetary policy and other economic policies,
including fiscal policy in order to achieve the objectives required and reduce the contradiction in the trends of
economic policies, as well as the diversification of sources of national income
