Kerbala International Journal of Management and Economics

Abstract
Iraqi economy one economies that possess great wealth, particularly oil and gas this has made the Iraqi economy based economy on the output of the oil sector with a lack of product other sectors and this which makes it vulnerable to external shocks of oil price shocks, as well as disruption of the structure of the general budget as the public spending is largely dependent on the size of oil revenues in foreign currency, and when the limitations of this revenue, the state resorted to the public debt or the new version of cash and as has happened in some periods.
Through the use of standard methods of modern of testing unit root test cointegration and use regression self-VAR and functions in response pulse and analysis of variance were the study found that the chain was unstable and stabilized after taking differences first, as well as the existence of integration joint any relationship exists Equilibrium long term between the variables used and also found that the impact of external shocks resulting from fluctuations in oil prices was greater than the internal shocks two monetary and fiscal policies.