Abstract
The research aims to examine the causal relationship between changes in the money supply and GDP growth in Iraq. The variables used in the study are: money supply (M1, M2, M3) and the Nominal GDP (NGDP). The data used are annual data for the period (1980-2012), has been using Granger causality and co-integration test and error correction model to determine the direction of the causal relationship between the two variables and the relationship equilibrium in the long term and short term. Show the results of the model error correction there are a relationship equilibrium long-term relationship between money supply (M1,M2,M3) and NGDP, as shown by the results of the test Granger causality going from money supply to scale the narrow and wide to the GDP, and it supports the views of Monetarism the impact of money on economic activity.
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