AL-Qadisiyah Journal For Administrative and Economic sciences

Measuring and Analyzing the Reality of Monetary Shocks and Their Repercussions on the Gross Domestic Product Rate in the Iraqi Economy for the Period (2005-2022 )

Document Type : Research Paper

Author

Raad M Tahir

General Directorate of Dhi Qar Education, Ministry of Education, Iraq

https://doi.org/10.33916/qjae.2026.0291120
Abstract
decision makers can intervene by controlling many monetary variables to achieve monetary stability, but failure in monetary stability causes monetary shocks, which leaves their effects on the level of economic stability.Through their effects on GDP and prices, monetary shocks include several types including cash supply shocks, cash demand shocks, and exchange rate shocks. This is reflected in the impact of cash shocks on the markets, with some participants adjusting their cash balances through the commodity and services markets, while others adjusting their balances through stocks and bonds in the stock markets. The impact of these shocks on output and prices varies, but these variables are unevenly affected by monetary shocks depending on how long the cash shocks occur. This research focused on the most prominent problems facing the Iraqi economy, namely the monetary shock and its impact on GDP. The results of the research found that the shock of the money supply, the speed of circulation and the exchange rate cause changes in the level of GDP, as the GDP is positively related to the speed of money circulation and the money supply, and a negative relationship with the parallel exchange rate.
The research concluded that there is a statistically significant long-term relationship between GDP and M1, V, and EX, which shows that monetary variables explain a large part of the change in GDP

Keywords

Monetary Shocks , Gross Domestic Product &ndash
GDP , Iraqi Economy , Monetary Policy , Vector Autoregression , Impulse Response Functions
Crossmark
AL-Qadisiyah Journal For Administrative and Economic sciences
Volume 28, Issue 2
Summer 2026
Pages 91-120

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