Abstract
Like many countries, industrialized and developing, one of the most fundamental objectives of macroeconomic policies is sustain high economic growth together with low inflation. The main objective of this research is to explain the causes of inflation in Iraq during 2003-2013. The analytical framework views inflation as responding to disequilibria in the internal and external sectors of the economy, In the Application process, there are two analyses were undertaken, First the time series properties in short and long run. Second, identify the directional of causal relationship between inflation and its determent. The conclusion suggests that the internal factors are more effective than external factors upon inflation and inflation rates Granger-cause economic growth.
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