Levent, Korap
(2008):
*Long-run relations between money, prices and output: the case of Turkey.*
Published in: Zonguldak Karaelmas Üniversitesi Sosyal Bilimler Dergisi
, Vol. 4, No. 7
(2008): pp. 33-54.

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## Abstract

In this paper, the long-run relationships between monetary aggregates, prices and real output level have been examined in a quantity theory of money perspective for the Turkish economy. Using some contemporaneous econometric techniques, our findings exhibit that stationary characteristics of the velocities of narrowly and broadly defined monetary aggregates cannot be rejected. However, monetary aggregates seem to have an endogeneity for the long-run evolution of prices and real income. Furthermore, some parameter instabilities and structural breaks have been attributed to the estimated model especially for the 1994 and 2001 economic crisis periods in the Turkish economy. We have concluded that given the endogenous characteristics of the monetary variables, monetary authority follows an accommodative monetary policy inside the period.

Item Type: | MPRA Paper |
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Original Title: | Long-run relations between money, prices and output: the case of Turkey |

English Title: | Long-run relations between money, prices and output: the case of Turkey |

Language: | English |

Keywords: | Quantity Theory of Money ; Co-integration ; Turkish Economy ; |

Subjects: | C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money |

Item ID: | 20265 |

Depositing User: | Levent Korap |

Date Deposited: | 27 Jan 2010 07:13 |

Last Modified: | 27 Sep 2019 03:11 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/20265 |