Reflection of the balance of payments situation on inflation in Iraq for the period (2000-2014)

Abstract

The balance of payments affects the deficit and the surplus in the balance of trade and what is included in this balance of imported inflation and its impact on inflation in Iraq as the changes in the balance of Iraq's trade has a domestic and international dimensions of inflation in Iraq.

It is noted that the gap between exports and imports sometimes increases in a positive and sometimes negative manner, and that the researcher is based on the CPI data for the years 2000-2014 and the balance of trade data (exports and imports) for the same years using the program (Eviews ). The researcher concluded that the net balance of trade reflects its clear effect on the overall inflation in the Iraqi economy. The empirical validity is acceptable, as reflected in the econometric indicators.