DOES IMPROVING THE FINANCIAL LITERACY SKILLS OF ADULTS FORM A BASIS FOR COMBATING INFLATION? A CASE STUDY IN TÜRKIYE

Rajab Habibov and Tolga Ulusoy ()
Additional contact information
Rajab Habibov: Kastamonu University, Faculty of Economics and Administrative Sciences, Finance and Banking Department
Tolga Ulusoy: Kastamonu University, Faculty of Economics and Administrative Sciences, Finance and Banking Department

Scientific Bulletin - Economic Sciences, 2025, vol. 24, issue 3, 25-32

Abstract: This study investigates, through the case of the province of Kastamonu, whether enhancing adults’ levels of financial literacy contributes to the fight against inflation. Financial literacy refers to individuals’ capacity to acquire knowledge and skills in finance so as to make informed decisions; inflation denotes the persistent rise in the general price level and the concomitant erosion of the purchasing power of money. In the pursuit of macroeconomic stability, household consumption habits and product demand play a decisive role in combating inflation; especially when supply is constrained, elevated demand pushes prices upwards and fuels inflation. The findings suggest that raising households’ financial literacy can aid inflation control via the demand-management channel. In this context, equipping households through financial education programmes and optimising demand behaviours emerge as effective strategies. While strengthening adults’ financial literacy serves as a key lever for fighting inflation, it is equally necessary to reassess demand-side behavio urs to ensure price discipline on the supply side. Accordingly, scaling up financial education and increasing individual awareness are of clear importance. The research indicates that not only public bodies, educational institutions, and civil society organisations but also—primarily—households themselves shoulder significant responsibilities

Keywords: Supply; Demand; Financial Literacy; Inflation; Türkiye (search for similar items in EconPapers)
JEL-codes: G41 G51 H31 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://economic.upit.ro/RePEc/pdf/2025_3_3.pdf (application/pdf)

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:pts:journl:y:2025:i::p1:25-32

Access Statistics for this article

Scientific Bulletin - Economic Sciences is currently edited by Alina Hagiu

More articles in Scientific Bulletin - Economic Sciences from University of Pitesti Contact information at EDIRC.
Bibliographic data for series maintained by Alina Hagiu ().