The Distributional Effects of Change the Exchange Ratein Iraq Economic During the Period (1990-2020)
2022, Volume 41, Issue 135, Pages 260-287
AbstractThe exchange rate is one of the economic foreign currencies used in economic policies. Since exchange rate fluctuations affect most monetary, financial, and real variables, The purpose of this study is to examine the distributional impacts of the Iraqi dinar exchange rate over time (1990-2020).To achieve this goal, the research relied on the descriptive and analytical approach that depends on time series data, and the use of a system of simultaneous equations using the two-stage least squares model (2SLS). To show the mutual effects of the Iraqi dinar exchange rate, GDP, investment spending, and consumer spending, Finally, the study came to several conclusions, including that there is a positive relationship between the exchange rate of the Iraqi dinar and GDP, that is, economic growth, Furthermore, there is a negative relationship between the Iraqi dinar exchange rate and consumer spending (poverty ratio) and investment spending. These findings are consistent with the reality of the Iraqi economy, which is reliant on oil exports (in dollars) to fund various imports (in dollars). According to the study, one of the most important means of achieving stability in the exchange rate exchange and strengthening the relationship between the exchange rate and economic variables is economic diversification policy.
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