Abstract
The monetary policy is considered to be one of the most important economic policies used in organizing economic life and solving its problems. The monetary policy followed by authorities at one time is based on a theory or monetary ideas prevailed at that time which in turn formulates the aim of the monetary policy and the method to achieve that aim. Practically speaking, the policy of the Central Bank was implemented by changing the reserves of the commercial banks and practicing the operations of the open market and discount prices which still constitute the basis of the monetary policy even in its wide concept. The research stems from the premise that "there is a relationship between the problems of inflation and the expansion of the monetary supply in developing countries. The research premises that economic effects of inflation unwanted in the economic performance of countries in the sample in question." The regression equations for the sample (13 States) have been done using the method of least squares (OLS) through a software package (Minitab .
