Abstract
This research, which dealt with the analysis of the relationship between the money supply and some of the macroeconomic variables (public spending, apparent unemployment), aims to uncover the effects that the money supply has on some of the macroeconomic variables in Iraq. Therefore, the money supply can affect the economic variables, and this has been proven by the standard tests, as the results of the study showed an integrative relationship between the independent variable represented by the money supply and the dependent variables (government spending and apparent unemployment)The money supply has an effect on public spending through the VECM model with a two-causal relationship through the granger test, along with a strong direct relationship through the correlation matrix between the money supply and public spending, and the results of the research revealed an inverse relationship between the money supply variable and virtual unemployment Through this relationship, the monetary authority can influence these economic variables to achieve economic stability.
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