المستخلص: |
The study recommends that the increase in the money supply must be Based on balanced expansionary monetary policy. And be proportionate to keep up with the increase in the size of the GDP of various goods and services, because the growth of the money supply is much larger than the growth in the size of the gross domestic product of goods and services will have negative effects, including: 1- high price levels (ie inflation), because inflation as Milton Friedman said that a monetary phenomenon, in the sense that there are many money chasing few goods. 2- the emergence of a state of confusion and economic instability. 3- national capital outflows. 4- reduction of the national currency's exchange rate against foreign currencies. 5- lack of confidence in the national currency. Therefore, the study recommends the decision makers. Control larger increase in the money supply. So as not to fall into the negative effects mentioned above, and work to avoid them, because the increase in the money supply double-edged sword. And that higher inflation. That lead to the fall in the previous negative effects mentioned. And the emergence of other disadvantages,
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