Measuring and Estimating the Effect of the Interest Rate on the
Inflation Rate and the Money Supply in Iraq for the Period (1995-
2018)
Jinan Salim Hilal
Al-Qadisiyah University – College of Administration and Economics
Corresponding Author: Jinan Salim Hilal
Abstract :
The study used three of the most important variables that constitute in their changes and movements a significant
impact on the level of economic activity. This study could specify the relationship between the interest rate and the
inflation rate on the one hand, and explain the relationship between the interest rate and the money supply on the
other. Stability tests, via using unit roots, showed that the variables were not stable at the general level, but rather
they proved stable in the initial discrepancies. The tests could also show that the variables were jointly integrated; this
led to the conclusion that there was a long-term equilibrant relationship among them, which means that the
movements of the variables do not diverge considerably from one another, rather, they behave similarly
