Public Expenditure
Parallel Exchange Rate
Nominal Stabilizer
Co-integration
Error Limit
Correction Vector Model.
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Public spending represents the government’s financial leverage and has a significant impact on real and monetary
economic variables, and one of these effects is the effect of public spending on the exchange rate as an important
monetary variable for monetary policy, As we know that public spending in Iraq is financed from oil revenues sold
in US dollars, and the Ministry of Finance converts the US dollar into Iraqi dinars to finance the government's need
to spend within the requirements and obligations of the state's general budget, And converting the US dollar into
Iraqi dinars has an impact on the parallel exchange market, even if there is a contractual exchange rate between the
Ministry of Finance and the Central Bank of Iraq to
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