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Analyzing The Correlation Between Monetary Depth and Inflation and Measuring its Impact On Purchasing Power In the Iraqi Economy for the Period (2004-2023)
Corresponding Author(s) : Faten Saeed Hameed
American Journal of Economics and Business Management,
Vol. 8 No. 3 (2025): March
Abstract
The research is interested in analyzing and evaluating the interaction of monetary depth with inflation as economic variables affecting and interacting in each other and measuring their impact on the purchasing power in the Iraqi economy, as this analysis contributes to understanding how to direct monetary and financial policy to work to reduce the inflationary effects and enhance stability in the currency, which is reflected in the economic activity and the standard of living of individuals, and it has become clear from the analysis that there is a reciprocal relationship between monetary depth and inflation, as the change in one can affect the other. Monetary depth can contribute to improving purchasing power by increasing productivity, enhancing investments and improving the efficiency of the distribution of financial resources to support price stability, as high inflation rates negatively affect the purchasing power of consumers in the Iraqi economy, leading to low living standards. The findings of the analysis provide an in-depth understanding of key economic trends that enables decision-makers related to monetary and fiscal policies to develop more accurate strategies that promote economic growth and stability.
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- . Ismail Hammadi Mejbel and Abdullah Qasim Muhammad, "The relationship between monetary depth and the private investment index in the Iraqi economy for the period (2004-2021)", Journal of Business Economics for Applied Research, Vol. (6), Issue (1), College of Administration and Economics, University of Fallujah, 2023, p. 158.
- . Mustafa Kamel Rashid and Suhaila Abdul Zahra Mastour, "Banking Reform: Reality and Remedies to Diversify Sources of Output in Iraq", Al-Mustansiriya University, Baghdad, 2017, p. 14.
- . Taleb Awad and Malik Yassin Al-Hayadin, "The Impact of Monetary Development on Economic Growth in Jordan", Journal of Administrative Sciences Studies, Vol. (38), No. (2), 2011, p. 515.
- . Younis Ali Ahmed and Kamran Ahmed Hamma, "Measuring the relationship between the determinants of money supply and economic growth in Iraq for the period (1991-2018)", Kamaran University Journal, Vol. (6), No. (2), 2019, p. 206.
- . Sobhi Hassoun Al-Saadi, "Indicators of Financial Depth Measurement: An Analytical Study in a Sample of Selected Countries for the Period 1980-2008", Journal of Economic Sciences, Vol. (17), 2011, p. 220.
- . Mahmoud Muhammad Dagher, "Macroeconomics Theories and Policies", First Edition, Dar Al-Kutub and Documents in Baghdad, 2018, p. 199.
- . Muhammad Ahmad Al-Affendi, "Introduction to Macroeconomics", Fifth Edition, Al-Amin for Publishing and Distribution, Sana'a, 2013, p. 489.
- . Awad Fadel Ismail Al-Dulaimi, "Money and Banks", First Edition, Dar Al-Hikma, 1990, p. 613.
- . Sobhi Nadres Gereida and Ahmad Ramadan Nematallah, "The Economics of Money and Banking", University House, Beirut, Lebanon, 2006, 241.
- . Mohamed Abdel Moneim and Ahmed Farid Mustafa, "Monetary and Knowledge Economy between Theory and Practice", University Youth Foundation, 2000, p. 129.
- . Muhammad Ezzat Ghozlan, "The Economics of Money and Banking", Dar Al-Nahda Al-Arabiya for Printing and Publishing, 2002, p. 83.
- . Abdallah Yassin AbdelazizSufyan, "An Econometric Study of the Determinants of the Parallel Exchange Rate According to the Purchasing Power Parity Theory of the Algerian Economy," Journal of Economics, Al-Jadeed, Vol. (12), No. (4), 2021, p. 640.
- . Hussein Mezoud, "The Increase in Wages and its Impact on Improving Purchasing Power", Political Orbits Magazine, Vol. (6), Issue (1), 2022, p. 69.
- . Nadia Al-Aqoun, "An analytical study of the impact of the official exchange rate on purchasing power / the case of Algeria for the period 1970-", 2019, Journal of Industrial Economics, Vol. (11), Issue (2), 2021, pp. 100-101.
- . Hakim Ikram, "The Impact of Financial Inflation on Purchasing Power", Larbi Ben M'hidi University Oum El Bouaghi, Political Orbits Magazine, Vol. (6), Issue (1), 2022, pp. 40-41.
- . R.Glenn Hubbard and Anthony Patrick Obrien,"Microeconomics",Eighth Edition,Inc,U.S.A,2017,p532-533.
- . Rania Al-Sheikh Taha, "Inflation: Its Causes and Effects and Ways to Address it", Introductory Booklet Series, Issue (18), Arab Monetary Fund, UAE, Abu Dhabi, 2021, p. 6.
- . Suhair Mahmoud Maatouk, "Modern Trends in Critical Analysis", Faculty of Commerce and Business Administration, Helwan University, Egyptian Lebanese House, 1987, p. 31.
- . Ben Arabiya Rabia and Ayboud Qada, "The repercussions of imported inflation on the purchasing power of the Algerian consumer: an analytical and econometric study during the period (1990-2020)", Eliza Journal for Research and Studies, Vol. (8), No. (1), 2023, p. 272.
- . Raja Aziz Bandar, "Inflation Targeting - A Study of Developing Countries' Experiences in Monetary Policy", Central Bank of Iraq, Directorate General of Statistics and Research, Department of Macroeconomics and Monetary Policy, Baghdad, p. 1.
- . Kawthar Muhammad Dahim, "The relationship between inflation variables and some economic variables in the Iraqi economy for the period 2010-2020", Iraqi Journal of Economic Sciences, Issue (76), 2022, p. 7.
- . Ahmed Hassan Al-Hiti and others, "Inflation in the Iraqi Economy for the Period 1990-2007: Causes and Effects and the Role of Fiscal Policy in Addressing it", Anbar University Journal of Economic and Administrative Sciences, Vol. (2), No. (3), pp. 6-8.
References
. Ismail Hammadi Mejbel and Abdullah Qasim Muhammad, "The relationship between monetary depth and the private investment index in the Iraqi economy for the period (2004-2021)", Journal of Business Economics for Applied Research, Vol. (6), Issue (1), College of Administration and Economics, University of Fallujah, 2023, p. 158.
. Mustafa Kamel Rashid and Suhaila Abdul Zahra Mastour, "Banking Reform: Reality and Remedies to Diversify Sources of Output in Iraq", Al-Mustansiriya University, Baghdad, 2017, p. 14.
. Taleb Awad and Malik Yassin Al-Hayadin, "The Impact of Monetary Development on Economic Growth in Jordan", Journal of Administrative Sciences Studies, Vol. (38), No. (2), 2011, p. 515.
. Younis Ali Ahmed and Kamran Ahmed Hamma, "Measuring the relationship between the determinants of money supply and economic growth in Iraq for the period (1991-2018)", Kamaran University Journal, Vol. (6), No. (2), 2019, p. 206.
. Sobhi Hassoun Al-Saadi, "Indicators of Financial Depth Measurement: An Analytical Study in a Sample of Selected Countries for the Period 1980-2008", Journal of Economic Sciences, Vol. (17), 2011, p. 220.
. Mahmoud Muhammad Dagher, "Macroeconomics Theories and Policies", First Edition, Dar Al-Kutub and Documents in Baghdad, 2018, p. 199.
. Muhammad Ahmad Al-Affendi, "Introduction to Macroeconomics", Fifth Edition, Al-Amin for Publishing and Distribution, Sana'a, 2013, p. 489.
. Awad Fadel Ismail Al-Dulaimi, "Money and Banks", First Edition, Dar Al-Hikma, 1990, p. 613.
. Sobhi Nadres Gereida and Ahmad Ramadan Nematallah, "The Economics of Money and Banking", University House, Beirut, Lebanon, 2006, 241.
. Mohamed Abdel Moneim and Ahmed Farid Mustafa, "Monetary and Knowledge Economy between Theory and Practice", University Youth Foundation, 2000, p. 129.
. Muhammad Ezzat Ghozlan, "The Economics of Money and Banking", Dar Al-Nahda Al-Arabiya for Printing and Publishing, 2002, p. 83.
. Abdallah Yassin AbdelazizSufyan, "An Econometric Study of the Determinants of the Parallel Exchange Rate According to the Purchasing Power Parity Theory of the Algerian Economy," Journal of Economics, Al-Jadeed, Vol. (12), No. (4), 2021, p. 640.
. Hussein Mezoud, "The Increase in Wages and its Impact on Improving Purchasing Power", Political Orbits Magazine, Vol. (6), Issue (1), 2022, p. 69.
. Nadia Al-Aqoun, "An analytical study of the impact of the official exchange rate on purchasing power / the case of Algeria for the period 1970-", 2019, Journal of Industrial Economics, Vol. (11), Issue (2), 2021, pp. 100-101.
. Hakim Ikram, "The Impact of Financial Inflation on Purchasing Power", Larbi Ben M'hidi University Oum El Bouaghi, Political Orbits Magazine, Vol. (6), Issue (1), 2022, pp. 40-41.
. R.Glenn Hubbard and Anthony Patrick Obrien,"Microeconomics",Eighth Edition,Inc,U.S.A,2017,p532-533.
. Rania Al-Sheikh Taha, "Inflation: Its Causes and Effects and Ways to Address it", Introductory Booklet Series, Issue (18), Arab Monetary Fund, UAE, Abu Dhabi, 2021, p. 6.
. Suhair Mahmoud Maatouk, "Modern Trends in Critical Analysis", Faculty of Commerce and Business Administration, Helwan University, Egyptian Lebanese House, 1987, p. 31.
. Ben Arabiya Rabia and Ayboud Qada, "The repercussions of imported inflation on the purchasing power of the Algerian consumer: an analytical and econometric study during the period (1990-2020)", Eliza Journal for Research and Studies, Vol. (8), No. (1), 2023, p. 272.
. Raja Aziz Bandar, "Inflation Targeting - A Study of Developing Countries' Experiences in Monetary Policy", Central Bank of Iraq, Directorate General of Statistics and Research, Department of Macroeconomics and Monetary Policy, Baghdad, p. 1.
. Kawthar Muhammad Dahim, "The relationship between inflation variables and some economic variables in the Iraqi economy for the period 2010-2020", Iraqi Journal of Economic Sciences, Issue (76), 2022, p. 7.
. Ahmed Hassan Al-Hiti and others, "Inflation in the Iraqi Economy for the Period 1990-2007: Causes and Effects and the Role of Fiscal Policy in Addressing it", Anbar University Journal of Economic and Administrative Sciences, Vol. (2), No. (3), pp. 6-8.