ANALYZING THE RELATIONSHIP BETWEEN AGGREGATE DEMAND AND MONETARY POLICY IN IRAQ FOR THE PERIOD 2004-2020

Abstract

The current research dealt with the trends of aggregate demand in Iraq and its overall modifications in components and proportions. Additionally, the research showed the extent to which the trends of aggregate demand were affected by the overall economic, political, social and even international conditions in the country during the study period. Monetary policy trends, represented by money supply management in the narrow sense M1, were also studied and shown, and the extent to which they were affected by the overall changes in the country on the one hand, and changes in aggregate demand on the other hand. It was concluded that changes in public expenditures have a noticeable impact on aggregate demand and its components. This is indicated by the rates of change and compound growth rates for both public expenditures and aggregate demand during the study period.