Para ve Maliye Politikasının Karşılaştırmalı Analizi: Türkiye için Ekonometrik bir Analiz

Comparative Analysis of Monetary and Fiscal Policy: An Econometric Case Study of Turkey

Felor Ebghaei

MPRA Paper from University Library of Munich, Germany

Abstract: Monetary and fiscal policies are two main policies which play an important role in the changes of economic activities. Monetary policy is applied by a central bank or monetary authority while fiscal policy is set by the government. The relative effectiveness of monetary and fiscal policies is an issue which is continuously discussed but could not be reached to any solution. In fact, the essence of the issue is based on the Monetarist-Keynesian debate. Monetarists favour monetary policy while Keynesian favour fiscal policy in the sense of effectiveness. In this study, it has been examined whether monetary or fiscal policy is more effective in Turkish economy during the period of 1980 to 2012. In order to achieve, money supply (M2) and government expenditure have been used as a proxy for monetary and fiscal policies. According to the findings obtained from the results of Cointegration Vector Auto - Reqressive Models, fiscal policy is more effective than monetary policy in Turkish economy.

Keywords: Monetary policy; Fiscal policy (search for similar items in EconPapers)
JEL-codes: E0 H3 (search for similar items in EconPapers)
Date: 2014-10, Revised 2017-03
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