MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY

Volume: 8 Number: 15 June 1, 2008
  • Cem Saatçioğlu
  • Levent Korap
EN TR

MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY

Abstract

In this paper, a money demand model upon M2 broad monetary aggregate for the Turkish economy is examined in a portfolio-based approach considering various alternative cost measures to hold money. Employing multivariate co-integration methodology of same order integrated variables, our estimation results indicate that there exists a theoretically plausible co-integrating vector in the long-run money demand variable space. The main alternative costs to demand for money are found as the depreciation rate of domestic currency and the course of equity prices, for which the former brings out the importance of currency substitution phenomenon settled in the economy. Besides, we find that domestic inflation carries a weakly exogenous characteristic and conclude that the main factors leading to the domestic inflation are determined out of the money demand variable space.

Keywords

Details

Primary Language

Turkish

Subjects

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Journal Section

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Authors

Cem Saatçioğlu This is me

Levent Korap This is me

Publication Date

June 1, 2008

Submission Date

June 1, 2008

Acceptance Date

-

Published in Issue

Year 2008 Volume: 8 Number: 15

APA
Saatçioğlu, C., & Korap, L. (2008). MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY. Sosyal Ekonomik Araştırmalar Dergisi, 8(15), 1-13. https://izlik.org/JA58HB42HK
AMA
1.Saatçioğlu C, Korap L. MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY. SUSEAD. 2008;8(15):1-13. https://izlik.org/JA58HB42HK
Chicago
Saatçioğlu, Cem, and Levent Korap. 2008. “MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY”. Sosyal Ekonomik Araştırmalar Dergisi 8 (15): 1-13. https://izlik.org/JA58HB42HK.
EndNote
Saatçioğlu C, Korap L (June 1, 2008) MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY. Sosyal Ekonomik Araştırmalar Dergisi 8 15 1–13.
IEEE
[1]C. Saatçioğlu and L. Korap, “MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY”, SUSEAD, vol. 8, no. 15, pp. 1–13, June 2008, [Online]. Available: https://izlik.org/JA58HB42HK
ISNAD
Saatçioğlu, Cem - Korap, Levent. “MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY”. Sosyal Ekonomik Araştırmalar Dergisi 8/15 (June 1, 2008): 1-13. https://izlik.org/JA58HB42HK.
JAMA
1.Saatçioğlu C, Korap L. MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY. SUSEAD. 2008;8:1–13.
MLA
Saatçioğlu, Cem, and Levent Korap. “MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY”. Sosyal Ekonomik Araştırmalar Dergisi, vol. 8, no. 15, June 2008, pp. 1-13, https://izlik.org/JA58HB42HK.
Vancouver
1.Cem Saatçioğlu, Levent Korap. MODELING TURKISH M2 BROAD MONEY DEMAND: A PORTFOLIO-BASED APPROACH USING IMPLICATIONS FOR MONETARY POLICY. SUSEAD [Internet]. 2008 Jun. 1;8(15):1-13. Available from: https://izlik.org/JA58HB42HK