EconPapers    
Economics at your fingertips  
 

On the causal link between money and output growth: Evidence from Turkey

Özge KANDEMİR Kocaaslan
Additional contact information
Özge KANDEMİR Kocaaslan: Hacettepe Üniversitesi

Iktisat Isletme ve Finans, 2014, vol. 29, issue 339, 09-26

Abstract: In this paper we empirically investigate the causal link between money and economic growth employing a Markov switching Granger causality analysis. We carry out our investigation using quarterly Turkey real Gross Domestic Product, real M2 and interbank money market rate data which cover the period between 1987:Q4 and 2012:Q1. We find that there are significant changes in the causal relation between money and economic growth over the sample period under investigation. Our results show that M2 growth and interest rate have significant predictive content for real economic activity in the Turkish economy. Furthermore, the causality running from interest rate to output growth seems to be strongly apparent particularly during the periods of economic downturn. We also document that M2 has predictive power in explaining output growth particularly during the mid-1980s and during 1990s.

Keywords: Growth; Money; Interest Rate; Markov-switching Granger Causality. (search for similar items in EconPapers)
JEL-codes: E32 C32 E52 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iif:iifjrn:v:29:y:2014:i:339:p:09-26

Ordering information: This journal article can be ordered from
http://www.iif.com.t ... ew/iif.2014.339.4115

Access Statistics for this article

Iktisat Isletme ve Finans is currently edited by Ali Bilge

More articles in Iktisat Isletme ve Finans from Bilgesel Yayincilik
Series data maintained by Ali Bilge ().

 
Page updated 2017-09-29
Handle: RePEc:iif:iifjrn:v:29:y:2014:i:339:p:09-26