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The Legal reserve and its effect on narrow money supply An Applied Research at the central Bank of Iraq | ||
| Baghdad College of Economic sciences University | ||
| Article 1, Volume 0, Issue 51, 2018, Pages 447-460 | ||
| Abstract | ||
| The legal reserve is considered the oldest instruments of monetary policy (quantitative tools) and used by the central banks dominated the money supply , and money supply have clear effect on macroeconomic variables to, most central banks are using their tools quantity in control of the exchange money supply, including the narrow money supply to influence the variables economy Overall. Current research has sought to prove the contribution of the legal reserve imposed by the Central Bank of Iraq in the narrow money supply for the period of 2010 until 2011 control. The search was based on a major premise, and that was recognized by using standard quantitative approach, namely: "There is a statistical relationship between the legal reserve of the Central Bank of Iraq and the narrow money supply" The research concluded that the CBI was able to affect the narrow money supply (60% and 82%) for 2010 and 2011 respectively, regression coefficients statistically elevated. | ||
| Keywords | ||
| The Legal reserve; narrow money supply | ||
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