Quantitative monetary shocks and their implications for the rate of inflation in the Iraqi economy For the period (1990 - 2019)

Abstract

The research aims to study the repercussions of quantitative monetary shocks (money supply shock) on the rate of inflation in the Iraqi economy based on the hypothesis that quantitative monetary shocks increase inflation rates and that their effects exceed the impact of their counterpart price shocks (interest rate shock and exchange rate shock). The research used the theoretical analysis method, which began with a conceptual introduction to the quantitative monetary shock and ended with an analysis of the monetary reality of the Iraqi economy in light of the quantitative monetary shocks. The research covered the period (1990-2019). The research reached a number of results, the most prominent of which was that the quantitative monetary shock increased the inflation rate in Iraq and its effects exceeded the effects of its counterpart, the price monetary shock, which reinforced the hypothesis of the research.