Analyzing The Correlation Between Monetary Depth and Inflation and Measuring its Impact On Purchasing Power In the Iraqi Economy for the Period (2004-2023)

The research is interested in analyzing and evaluating the interaction of monetary depth with inflation as economic variables affecting and interacting in each other and measuring their impact on the purchasing power in the Iraqi economy, as this analysis contributes to understanding how to direct monetary and financial policy to work to reduce the inflationary effects and enhance stability in the currency, which is reflected in the economic activity and the standard of living of individuals, and it has become clear from the analysis that there is a reciprocal relationship between monetary depth and inflation, as the change in one can affect the other. Monetary depth can contribute to improving purchasing power by increasing productivity, enhancing investments and improving the efficiency of the distribution of financial resources to support price stability, as high inflation rates negatively affect the purchasing power of consumers in the Iraqi economy, leading to low living standards. The findings of the analysis provide an in-depth understanding of key economic trends that enables decision-makers related to monetary and fiscal policies to develop more accurate strategies that promote economic growth and stability.