An Analysis of the Demand for Money Function in Iraq
الملخص
Developing and executing monetary policy requires an understanding of the stability of monetary aggregates and the variables influencing the demand for money in the economy, given the sensitivity and importance of money in the economy as the fuel of the production process. In this study, the Autoregression Distributed Lag (ARDL) model was used to experimentally estimate the broad money demand function (M2). Using annual data, the GDP, exchange rate (EX), inflation rate (INF), and interest rate (R) for the years 2003–2024 were computed. A long-term cointegration link between (M2) and its determinants was discovered by the investigation. Additionally, the study discovered a favorable short-term correlation between (M2) and GDP and the exchange rate. The CUSUM test findings also demonstrated the stability of the money demand function in the Iraqi economy and the efficacy of using (M2) as a monetary policy criteria
التنزيلات
المراجع
Abdul Rishad, Akhil Sharma, and Sanjeev Gupta, Demand for Money in India: An ARDL Approach, Springer Nature Switzerland AG 2018.
Andreea Paunescu, Determinants of Demand for Money in Romania, The academy of economic studies Bucharest, The Faculty of Finance, Insurance, Banking and Stock Exchanges, Dissertation Paper, 2002.
Bonface Munene Mujuri, Lawrence Kibet, Effect of Financial Innovation on Money Demand in Kenya, Journal of Economics and Sustainable Development, Vol.9, No.16, 2018.
Central Bank of Iraq Statistical Bulletin for different years.
Imiso Msomil, Sanele Gumed, The Stability of Money Demand in South Africa, Acata Universities Danubius, Vol 20, No 4, 2024.
James M. Boughton. International Comparisons of Money Demand: A Review Essay, IMF Working Paper,1992.
Jean-Claude Nachega, Financial Liberalization, Money Demand, and Inflation in Uganda, IMF Working Paper,2001.
Saten Kumar & Mamta Chowdhury, Demand for Money in the Selected OECD Countries: A Time Series Panel Data Approach and Structural Breaks, 2013.
Subramanian S. Sriram, Survey of Literature on Demand for Money: Theoretical and Empirical Work with Special Reference to Error-Correction Models, IMF Working Paper,1999.
Sunil Kumar Singh, Jyotish Kumar, Estimation of Demand for Money Function in India, Anukriti (An International Refereed Research Journal), Vol. 5, No. 3/2015.
Takeshi & Shigeyuki, An Empirical Analysis of the Money Demand Function in India, Discussion Paper, No.166 ,2008.
