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Time-varying causality between money supply growth and inflation: new evidence from Turkey

İ̇lhan Eroglu and Fatih Yeter

Applied Economics Letters, 2023, vol. 30, issue 21, 3094-3098

Abstract: This research investigates the causal links between money supply growth and inflation in Turkey. Unlike previous literature, In the investigation of causality, time-varying causality tests were applied. The results indicate that there is causality from money supply growth to inflation. However, it emphasizes that when time-varying causality is considered, causality is not homogeneous throughout the sample, but heterogeneous, more sensitive to structural breaks.

Date: 2023
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DOI: 10.1080/13504851.2022.2159007

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