Research Summary
It highlights the importance of assessing the demand for money function in Iraq through the understanding of the relationship between him and affecting the variables by searching the stability of this function and the extent of their influence in the Iraqi dinar exchange rate in order to know the amount of their contribution to the monetary policies of the Iraqi economy fee, as well as through study behavior of the demand for money function in Iraq and analyze the determinants of the demand for money for the period 1991-2013 and the impact of these determinants in the demand for money in Iraq.
And that the problem that we face is how to estimate the total demand for money in the size of Iraq and how to achieve monetary stability, especially that the Iraqi economy has seen many disorders such as high inflation and the increase in the money supply ... etc, which contributed to the instability of the demand for cash during the period (1991-2013.(
Where is the demand for money is important elements in check the balance in the money market through the reduction of monetary turmoil, and their negative impact on economic activity, due to the role played by the cash demand in achieving economic stability as a result of the close relationship that links between him and the many variables economic and monetary which differ in their impact on the economy.
The objective of this research to study the function of the behavior of the demand for money in Iraq through the analysis of the most important determinants for the period (1991-2013) and measure the effect of stabilizing function of the demand for money in the Iraqi dinar exchange rate.
And most important, our findings are a relationship between the demand for money and the factors specific to him, as the changes that occur in the demand for money determinants affecting the demand for cash, that the Iraqi economy has seen high rates of inflation reached the runaway inflation that led to a decline the value of the Iraqi dinar and thus lower the Iraqi dinar exchange rate against the dollar and this has led to instability and the stability of the rotational speed of the money during the period (1991-2003) and thus to not stability of demand for money function.
