Measuring and Analyzing the Impact of Some Economic Variables on the Speed of Money Circulation in Iraq for the Period 1990-2021

The study aims to measure and analyze the impact of some economic variables, such as the growth rate of gross domestic production, inflation, exchange rate, and financial progress on the narrow and broad money circulation (V1-V2) in Iraq for the period (1990-2021). To prove the research hypothesis, a stability test was conducted (unit root according to the Phillips-Perron test). Some series were unstable at their initial level and became stable after taking the first difference, while the co-integration model was estimated using the Johansen-Gillis method for the variables studied, it became clear that there at least according to the impact test, the maximum possibility test for the variable (V1), while the results of the impact test (Test Tracks) proved the presence of at least two vectors and the presence of at least one vector for the maximum possibility test (Maxigen) for the variable (V2) with the use of the autoregressive test (ARDL) to test the significance of the parameters included in the model, it was found that the GDP growth rate has a positive effect, while (inflation, exchange rate, level of financial progress) showed a strong negative significant effect on the velocity of money circulation in its narrow sense only, while the model as a whole was found to be insignificant among the variables affecting the speed of money circulation in its broad sense. The long-run co-integration test (Bounds Test) was also conducted, as well as the use of the Causality Test (Granger causality), which concluded that the financial development index leads to an increase in the velocity of money circulation in the narrow sense, while an increase in the speed of broad money circulation causes stimulation of financial development, while an increase in the GDP growth rate leads to an increase in inflation, we found that an increase in the exchange rate leads to an increase in inflation rates.