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A closer look at the money multipliers for the Turkish economy: Is there a stable relationship?

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  • Korap, Levent

Abstract

This paper examines whether the money multiplier processes in the Turkish economy is stable and can be forecasted. Research results using quarterly frequency data for the 1987Q1 – 2009Q4 investigation period show that the processes which convert the base money supply aggregates into the final monetary aggregates are unstable and tend to decrease the effectiveness of policies pursued by the monetary authorities. Such a result do not attribute credibility to the traditional Monetarist prescriptions for the conduct of the monetary economic policies in the Turkish economy.

Suggested Citation

  • Korap, Levent, 2011. "A closer look at the money multipliers for the Turkish economy: Is there a stable relationship?," MPRA Paper 40778, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:40778
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    File URL: https://mpra.ub.uni-muenchen.de/40778/1/MPRA_paper_40778.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Money Multipliers ; Turkish Economy ;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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