@article{article_465428, title={CPI, MONEY SUPPLY AND EXCHANGE RATE DYNAMICS IN TURKEY: A VECM APPROACH}, journal={Journal of Economics Finance and Accounting}, volume={5}, pages={249–260}, year={2018}, author={Sunal, Onur}, keywords={Inflation,money supply,exchange rates,error correction model,Turkey}, abstract={<p class="MsoNormal" style="margin-bottom:.0001pt;text-align:justify;line-height:normal;"> <b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">Purpose- </span> </b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">The
aim of this study is to outline the relationship between The Consumer Price
Index (CPI), Money Supply (M3) and The Exchange Rates (EXC) in Turkey. <b> </b> </span> </p> <p> <b> </b> </p> <b> </b> <p class="MsoNormal" style="margin-bottom:.0001pt;text-align:justify;line-height:normal;"> <b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">Methodology- </span> </b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">The
data were gathered from The Turkish Statistical Instittute and The Central Bank
which covers the monthly period between 2005/1 and 2017/12 and were taken on
their own levels where an error correction model was utilized to reveal both
the long and short run relationships. </span> </p> <p> </p> <p class="MsoNormal" style="margin-bottom:.0001pt;text-align:justify;line-height:normal;"> <b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">Findings- </span> </b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">The
results revealed that 100 billion TL rise in M3 is accompanied by 19 points
increase in the CPI and 1TL depreciation of local currency (appreciation of $)
leads to 82.9 points upswing in CPI. </span> </p> <p> </p> <p class="MsoNormal" style="margin-bottom:.0001pt;text-align:justify;line-height:normal;"> <b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">Conclusion- </span> </b> <span lang="tr" style="font-size:8pt;" xml:lang="tr">The Cointegrating equation revealed
that there was a significant long-run relationship between CPI, Money Supply
and Exchange Rates. Moreover </span> <span lang="tr" style="font-size:8pt;" xml:lang="tr">changes in M3 and
EXC together cause changes in CPI at .10 significance level. Money Supply
endogeneity was also observed at the 10 level. </span> </p> <p> </p>}, number={3}, publisher={Suat TEKER}