The Impact of Public Debt on the Money Supply in Iraq for the Period (2004-2022)
- Post by: Muthanna mjdes
- July 1, 2024
- Comments off
Abstract
Public debt is subject to differences between the primary schools of economic thought, Classical and Keynesian thought, and each school looks at public debt from a different perspective in terms of the impact of public debt on the economic and social balance. Internal debt differs from the economy’s external debt because the economic surplus is transmitted between generations. Within a country or between a government and another country, local public debt is one of the economic variables affecting money supply movements through the impact of local public debt on interest rates and on liquidity reserves that form the basis of monetary policy, which is what the research focuses on. Therefore, it focused on studying the impact of debt. The general internal effects on the money supply concerning the general budget deficit which is considered the basis for the existence of domestic public debt and its economic impact. Local government debt represents an increase in government spending relative to government revenues, and this increase in government spending necessarily reflects changes in the monetary base resulting from the impact of local government debt on the liquidity reserves of the banking system. These changes in the economic base lead to a change in the money supply, and the result is the impact of internal public debt on the money supply, which is an indicator of the development of reserves and bank deposits in the national economy.
Muthanna Journal of Administrative and Economic Sciences, 2024,Volume 14, Issue 2, Pages 1-9
DOI:10.52113/6/2024-14-2/1-9
