The relationship between military expenditures and inflation analysis In Iraq for the period (2015-1999)


The importance of military expenditures has become a burden economically growing on the state budget in many countries, but that the search for the effects surrounded by great difficulties notably that alimony out often about the economic scale to settle in the political and strategic area, which means that their control is difficult, therefore, have State to be very careful of what caused these effects of the economic dangers must be avoided.There is no doubt that military spending is one of the channels that are involved in the growing inflationary pressures, although the size of this depends mainly on the relative weight to the size of military expenditure in GDP, that gravity is determined by the axial dimension of the relationship between military expenditures and the general level of prices.Whenever this was a great gravity, lead change in which it occurs to bring about repercussions felt in various types of economic variables, including the overall general level of prices.Military expenditures and positively influence the general price level, ie it upwards will raise the prices, and vice versa, which means that it will contribute one way or another and in a manner directly or indirectly in the creation of inflationary pressures which requires reduce it if alleviate these pressures.