MONEY, INCOME, AND CAUSALITY: AN EXAMINATION FOR THE TURKISH ECONOMY
ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA, cilt.26, sa.1, ss.171-182, 2013 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 26 Sayı: 1
- Basım Tarihi: 2013
- Doi Numarası: 10.1080/1331677x.2013.11517596
- Dergi Adı: ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
- Sayfa Sayıları: ss.171-182
- İstanbul Üniversitesi Adresli: Evet
Özet
This paper examines the direction of causality between money and income for the Turkish economy using quarterly data over the period of 1987 to 2011. A vector autoregression model consisting of the real gross domestic product, the broad money supply, the three months deposit rate as short-term interest rate, and the consumer price index is constructed to implement causality tests. Also, a leveraged bootstrapped simulation technique is used when conducting causality tests in order to make the results more robust. The empirical results suggest a bidirectional causation between the two variables and that monetary aggregates may provide relevant information in the implementation of monetary policy.