 Comparing Equation of Exchange and Wage-Cost Mark-up Identity for Turkish EconomyRahmi Yamak, Havvanur Feyza Erdem and Fatma Kolcu Romanian Economic Journal, 2015, vol. 18, issue 58, 117-138 Abstract: In economic literature, Monetarists have argued that money growth over transactions growth would exactly cause the same growth in the price level. In contrast, Weintraub, one of the leading economists of the Post Keynesian School has believed that the effect of the money supply on the price level is not direct. The aim of this study is to empirically investigate and to compare the arguments of Monetarists and Post Keynesians on the inflation for the case of Turkey. The data used in the study are annual and cover the period of 1990-2013. In this study, the equations implied by both Schools were compared to each other in terms of their predictive powers, their statistical robustness and the validity of the hypotheses provided by them. In a result, strong support was found for WCMI especially in terms of its predictive power. Keywords: Equation of Exchange; Wage-Cost Mark-up Identity; Model Performances; Statistical Robustness (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:18:y:2015:i:58:p:117-138 Access Statistics for this article Romanian Economic Journal is currently edited by Ioan Popa, PhD More articles in Romanian Economic Journal from Department of International Business and Economics from the Academy of Economic Studies Bucharest Contact information at EDIRC. |
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