The Impact of Monetary Policy on the Some Economic Variables of Iraq Economy Through Credit Channel
Ph.D. Student in Economics, Tarbiat Modares University, Dhi Qar city, Iraq
Bahram Sahabi
Associate Professor in Economics, Tarbiat Modares University,Tehran, Iran
Hasan Heydari
Assistant Professor in Economics, Tarbiat Modares University,Tehran, Iran
Abbas Assari
Associate Professor in Economics, Tarbiat Modares University,Tehran, Iran
Abstract
The threshold effect of monetary policy on the nominal and real economic variables through the credit channel in Iraq has been investigated using the threshold structural vector autoregressive model from 1970-2018. The results showed that the threshold of money growth in the nominal sector (inflation) is 3.13% and in the real sector is 9.76 % per year. Also, the impact of monetary policy values above the threshold on the real sector (economic growth) through the credit channel This shows a statistically significant relationship, and values below the threshold have been confirmed only in the long run. In the nominal sector, the effect of the monetary policy above the threshold is only confirmed in the short run, and below the threshold values are This shows a statistically significant relationship.