The Dynamic Effect of the Money Supply on the Leakage of the Hard Currency - A Standard Analytical Study, Iraq as a Model
Keywords:
money supply (M2), money circulation velocity (V), foreign currency, dollar, monetary policyAbstract
The study aims to analyze and measure the impact of each of the money supply and the speed of money turnover on a study period extending from 2004 to 2020, depending on the (ARDL) method. Or the speed of money circulation, and that the monetary policy worked to correct the imbalances that occur in the short term by 76%, and therefore the increase in the money supply and the speed of money circulation is reflected to be negative on the external leakage of the dollar.
While the study recommended reducing dollar sales except for the most necessary cases in order to preserve the US dollar, the study believes that the monetary authorities (the Central Bank of Iraq) are supposed to work to curb the increasing growth in the money supply.
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References
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