Analysis the Relation between the Real Interest Rate and its shares of Total Expenditure from (GDP) in the Iraqi economy | ||
| مجلة جامعة الانبار للعلوم الاقتصادیة والاداریة | ||
| Article 19, Volume 10, Issue 21, February 2018, Pages 413-431 PDF (503.58 K) | ||
| Authors | ||
| Shakir Hammood sallal .; Hasan khalaf Radhi . | ||
| . | ||
| Abstract | ||
| In this paper, the behavior of the real interest and the components of the Total Expenditure Share in Iraq for the period (1990-2014) is present. Based on the descriptive analysis of the variables and explained that the behavior in the real interest rate had not followed by similar behavior in the total expenditure shares according to the logic of economic theory, which indicates the existence of a breakdown in the mechanism of transition from monetary market to the real market. The behavior of data in the real interest rate and private expenditure are note to confirm the complete separation between the variables. This study reached a number of conclusions which include Interest rates are not determined according to the supply and demand forces in the economy, for many reasons, such as the financial system, the inability of the banking system to transmit monetary policy signals, and the imbalance of payments. To make the structural changes and reform of the financial system and banking in Iraq give greater role to the private sector in the overall production and service activity. Tourism in Iraq (religious and archaeological) strengthening the competitiveness of commodities produced, especially cement, phosphate, sulfur and the petroleum industry. The linking of mechanisms imports with an automated system with different banks and the central bank to control the flow of capital abroad compared with the inside of goods and volume of foreign currencies exported against them. | ||
| Keywords | ||
| Components of the total Expenditure Share from; GDP; Inflation; Real Interest Rate; Nominal Interest Rate; Behavior | ||
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