Search

This paper presents the different points of view of the classical school, the Keynesian school, and the monetary school regarding the velocity of money circulation. It aims to investigate the determinants of money velocity in Iraq for the period from 2005:1- to 2020:4, using the autoregressive distributed lag approach (ARDL Model). The results indicate the existence of a long-term equilibrium relationship between the velocity of money circulation and its determinants. When estimating the parameters, it is found that the GDP growth rate has a positive effect on the velocity of money circulation, and it is the only variable that demonstrates statistical significance. Diagnostic tests were conducted, confirming that the model is free from the problems of serial correlation and heteroscedasticity in the error term, as well as demonstrating the stability of the parameters in the long term relationship between the velocity of money circulation and its explanatory variables. Based on these results, the researcher suggests that it is preferable to use the growth rate of the money supply, rather than interest rates as an indicator for measuring the impact of monetary policy on economic activity in Iraq. [ABSTRACT FROM AUTHOR]

The main objective of the study of the construction of regression models and time series is to identify the behaviour of the studied phenomenon and its components from the general trend, seasonal and periodic, what are the relationships and influence among them and try to understand the behaviour of economic phenomena and others through studying the historical data of this phenomenon and then the possibility of predicting accurately or interpretation of phenomena and relationships Between the variables to put before the economic planner and the decision maker to make a sound decision based on quantitative and scientific method In our study we will address a set of special modalities for the exponential boot models with a review of their relationship with each other and methods of comparison Ma According to some statistical measures. Therefore, the research will deal with the construction of models for the financial and economic analysis of the variable value of the broad money supply and the data issued by the Central Bank of Iraq. The following models will be dealt with in detail in terms of statistical equations and estimation methods (simple average, Singular, Holt model, dual exponential boot, weighted average and other important econometric models to develop the reality of the Iraqi economy. [ABSTRACT FROM AUTHOR]