USING TODA-YAMAMOTO CAUSALITY TO MEASURE THE RELATIONSHIP BETWEEN SOME MONETARY POLICY VARIABLES IN IRAQ FOR THE PERIOD (2004 - 2023)

Abstract

Monetary policy plays an important role in the economy of any country. It dominates and governs the banking performance and the granting of credit to banks. It allows the right climate for investments and the movement of funds through its instruments and is in control of the country's money supply. As Iraq suffers from structural problems in the economy, we have tried in this research to demonstrate and demonstrate the relationship between the variables of monetary policy instruments and the total monetary credit between using causation. (Toda - Yamoto) In order to know the causal relationship variables total cash credit, exchange rate, cash offer and interest rate in Iraq for the duration (2004-2023) The results showed a causal and one-way relationship in the majority of the results of causation tests, while some variables do not have a long-term causal relationship. This is consistent with economic theory, since the relationship between variables is intentional and travels over a short period of time.