The Relationship Between Government Spending and Inflation in Iraq for the Period (2004-2017)

Abstract

The research aims to show the relationship of government expenditure to inflation in Iraq during the period (2004-2017). Where Iraq gave during this period of spending an important amount in its economic policy, this spending led to the emergence of large gaps in demand and supply, which caused great inflationary pressures in the Iraqi economy, What has become of them is the lack of a real vision of government spending. One of the results of this research is a balanced relationship between government spending and inflation during the study period. Besides government spending is one of the reasons for the emergence of the problem of inflation in Iraq. Keywords: Government Spending, Inflation, Dickey–Fuller test, Johansen Test