Proceedings of the 46th International Academic Conference, Rome

TRANSMISSION MECHANISM OF MONETARY POLICY: THE CASE OF TURKEY

GÜLÇIN TAPŞIN

Abstract:

Central Banks use monetary policy tools in order to reach such ultimate aims as enabling price stability, stabilizing output gap and increasing employment. The effects of monetary policies applied in accordance with the business cycles on the mentioned macroeconomic variables are realized by means of monetary transmission channels. The analysis of monetary transmission mechanisms indicating the macroeconomic outcomes of the change in the monetary policy tools is of high importance in terms of these policies’ efficiency. This study examines the efficiency of monetary transmission mechanism in Turkey for the years between 1995:01-2018:11 by using the Toda-Yamamoto causality test.

Keywords: Monetary Policy, Monetary Transmission Mechanism, Toda-Yamamoto causality test

DOI: 10.20472/IAC.2019.046.024

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