BibTex RIS Cite

B.E.A Money Supply And Economic Growth; The Case Of Turkey

Year 2014, Volume: 4 Issue: 7, - , 10.03.2014

Mehmet Adak

https://doi.org/10.17828/yasbed.40253

Abstract

This paper will analyze the money supply effects on economic growth. The analysiscovers the years between 1987 and 2007. The Analysis is set on a quarterly dataset basis.The ordinary least square method is employed after analyzing each variable time series.Each variable’s time series is analyzed separately wherein the statistical inter-relations arerevealed. The linear model is used between two variables with Ordinary Least SquareMethod. The econometric analysis outputs show that there is causality between moneysupply and economic growth in Turkey. The positive effect of money supply growth in thefirst quarter can be seen in the first (same) quarter and fourth quarter of economic growth.In the second and third quarters, the influence of money growth on economic growth ratesis negative.

References

  • Clower, R. W. (1967). A Reconsideration of the micro foundations of monetary theory. Western Economic Journal, 6, 1-9.
  • Friedman, M., Schwartz, A.J. (1963). Money and business cycles. Review of Economics and Statistics, 45, 32–64.
  • Kaldor, N. (1958). Monetary policy, economic stability and growth. A memorandum submitted to the Committee of the Working of the Monetary System (Radcliffe Committee), June Reprinted in Collected Economic Papers, Volume 3, Essays on Economic Policy 1 (1964) London: Duckworth
  • Leeper, E.M., J.E. Roush (2003). Putting ‘M’ back into monetary policy, Journal of Money Credit and Banking, 35, 1217–1256.
  • Longzhen Fan a , Yihong Yu a , Chu Zhang (2011). An empirical evaluation of China’s monetary policies, Journal of Macroeconomics, 33, 358–371
  • McCallum, B., (1988). Robustness properties of a rule for monetary policy. Carnegie-Rochester Conference Series on Public Policy, 29, 173–204.
  • Minsky, H. (1957). Central banking and money market changes. Quarterly Journal of Economics, 71(2) 171–87.
  • Moore, B. (1991). Money supply endogeneity: ‘reserve price setting’ or ‘reserve quantity setting?’, Journal of Post Keynesian Economics, 13(3): 404–13.
  • Nelson, E. (2002). Direct effects of base money on aggregate demand: theory and evidence, Journal of Monetary Economics, 49 (4), 687–708.
  • R.W. Hafera, Joseph H. Haslagb, Garett Jonesc (2007). On money and output: Is money redundant?, Journal of Monetary Economics, 54, 945–954
  • Rudebusch, G.D., Lars .E.O Svensson (1999). Policy rules for inflation targeting. In:Taylor, J.B. (Ed.) Monetary Policy Rules. (pp. 203-246) University of Chicago Press, Chicago. Rudebusch, G.D., Lars E.O. Svensson (2002). Eurosystem monetary targeting: lessons from US data, European Economic Review, 46, 417–442.
  • Sims, C.A. (1992). Interpreting the macroeconomic time series facts: the effects of monetary policy. European Economic Review, 36, 975–1000.
  • Taylor, J.B. (1993). Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195–214.
  • Taylor, J.B. (2001). The role of the exchange rate in monetary policy rules, American Economic Review, 91, 263–267.
  • Thirlwall, A. P. (1987). Nicholas Kaldor. The New York University Press, New York
  • Tobin, J. (1965). Money and economic growth, Econometrica, 33, 671-684.
  • Clower, R. W. (1967). A Reconsideration of the micro foundations of monetary theory. Western Economic Journal, 6, 1-9.
  • Friedman, M., Schwartz, A.J. (1963). Money and business cycles. Review of Economics and Statistics, 45, 32–64.
  • Kaldor, N. (1958). Monetary policy, economic stability and growth. A memorandum submitted to the Committee of the Working of the Monetary System (Radcliffe Committee), June Reprinted in Collected Economic Papers, Volume 3, Essays on Economic Policy 1 (1964) London: Duckworth
  • Leeper, E.M., J.E. Roush (2003). Putting ‘M’ back into monetary policy, Journal of Money Credit and Banking, 35, 1217–1256.
  • Longzhen Fan a , Yihong Yu a , Chu Zhang (2011). An empirical evaluation of China’s monetary policies, Journal of Macroeconomics, 33, 358–371
  • McCallum, B., (1988). Robustness properties of a rule for monetary policy. Carnegie-Rochester Conference Series on Public Policy, 29, 173–204.
  • Minsky, H. (1957). Central banking and money market changes. Quarterly Journal of Economics, 71(2) 171–87.
  • Moore, B. (1991). Money supply endogeneity: ‘reserve price setting’ or ‘reserve quantity setting?’, Journal of Post Keynesian Economics, 13(3): 404–13.
  • Nelson, E. (2002). Direct effects of base money on aggregate demand: theory and evidence, Journal of Monetary Economics, 49 (4), 687–708.
  • R.W. Hafera, Joseph H. Haslagb, Garett Jonesc (2007). On money and output: Is money redundant?, Journal of Monetary Economics, 54, 945–954
  • Rudebusch, G.D., Lars .E.O Svensson (1999). Policy rules for inflation targeting. In:Taylor, J.B. (Ed.) Monetary Policy Rules. (pp. 203-246) University of Chicago Press, Chicago. Rudebusch, G.D., Lars E.O. Svensson (2002). Eurosystem monetary targeting: lessons from US data, European Economic Review, 46, 417–442.
  • Sims, C.A. (1992). Interpreting the macroeconomic time series facts: the effects of monetary policy. European Economic Review, 36, 975–1000.
  • Taylor, J.B. (1993). Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195–214.
  • Taylor, J.B. (2001). The role of the exchange rate in monetary policy rules, American Economic Review, 91, 263–267.
  • Thirlwall, A. P. (1987). Nicholas Kaldor. The New York University Press, New York
  • Tobin, J. (1965). Money and economic growth, Econometrica, 33, 671-684.

B.E.A Money Supply And Economic Growth; The Case Of Turkey

Year 2014, Volume: 4 Issue: 7, - , 10.03.2014

Mehmet Adak

https://doi.org/10.17828/yasbed.40253

Abstract

This paper will analyze the money supply effects on economic growth. The analysiscovers the years between 1987 and 2007. The Analysis is set on a quarterly dataset basis.The ordinary least square method is employed after analyzing each variable time series.Each variable’s time series is analyzed separately wherein the statistical inter-relations arerevealed. The linear model is used between two variables with Ordinary Least SquareMethod. The econometric analysis outputs show that there is causality between moneysupply and economic growth in Turkey. The positive effect of money supply growth in thefirst quarter can be seen in the first (same) quarter and fourth quarter of economic growth.In the second and third quarters, the influence of money growth on economic growth ratesis negative.

References

  • Clower, R. W. (1967). A Reconsideration of the micro foundations of monetary theory. Western Economic Journal, 6, 1-9.
  • Friedman, M., Schwartz, A.J. (1963). Money and business cycles. Review of Economics and Statistics, 45, 32–64.
  • Kaldor, N. (1958). Monetary policy, economic stability and growth. A memorandum submitted to the Committee of the Working of the Monetary System (Radcliffe Committee), June Reprinted in Collected Economic Papers, Volume 3, Essays on Economic Policy 1 (1964) London: Duckworth
  • Leeper, E.M., J.E. Roush (2003). Putting ‘M’ back into monetary policy, Journal of Money Credit and Banking, 35, 1217–1256.
  • Longzhen Fan a , Yihong Yu a , Chu Zhang (2011). An empirical evaluation of China’s monetary policies, Journal of Macroeconomics, 33, 358–371
  • McCallum, B., (1988). Robustness properties of a rule for monetary policy. Carnegie-Rochester Conference Series on Public Policy, 29, 173–204.
  • Minsky, H. (1957). Central banking and money market changes. Quarterly Journal of Economics, 71(2) 171–87.
  • Moore, B. (1991). Money supply endogeneity: ‘reserve price setting’ or ‘reserve quantity setting?’, Journal of Post Keynesian Economics, 13(3): 404–13.
  • Nelson, E. (2002). Direct effects of base money on aggregate demand: theory and evidence, Journal of Monetary Economics, 49 (4), 687–708.
  • R.W. Hafera, Joseph H. Haslagb, Garett Jonesc (2007). On money and output: Is money redundant?, Journal of Monetary Economics, 54, 945–954
  • Rudebusch, G.D., Lars .E.O Svensson (1999). Policy rules for inflation targeting. In:Taylor, J.B. (Ed.) Monetary Policy Rules. (pp. 203-246) University of Chicago Press, Chicago. Rudebusch, G.D., Lars E.O. Svensson (2002). Eurosystem monetary targeting: lessons from US data, European Economic Review, 46, 417–442.
  • Sims, C.A. (1992). Interpreting the macroeconomic time series facts: the effects of monetary policy. European Economic Review, 36, 975–1000.
  • Taylor, J.B. (1993). Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195–214.
  • Taylor, J.B. (2001). The role of the exchange rate in monetary policy rules, American Economic Review, 91, 263–267.
  • Thirlwall, A. P. (1987). Nicholas Kaldor. The New York University Press, New York
  • Tobin, J. (1965). Money and economic growth, Econometrica, 33, 671-684.
  • Clower, R. W. (1967). A Reconsideration of the micro foundations of monetary theory. Western Economic Journal, 6, 1-9.
  • Friedman, M., Schwartz, A.J. (1963). Money and business cycles. Review of Economics and Statistics, 45, 32–64.
  • Kaldor, N. (1958). Monetary policy, economic stability and growth. A memorandum submitted to the Committee of the Working of the Monetary System (Radcliffe Committee), June Reprinted in Collected Economic Papers, Volume 3, Essays on Economic Policy 1 (1964) London: Duckworth
  • Leeper, E.M., J.E. Roush (2003). Putting ‘M’ back into monetary policy, Journal of Money Credit and Banking, 35, 1217–1256.
  • Longzhen Fan a , Yihong Yu a , Chu Zhang (2011). An empirical evaluation of China’s monetary policies, Journal of Macroeconomics, 33, 358–371
  • McCallum, B., (1988). Robustness properties of a rule for monetary policy. Carnegie-Rochester Conference Series on Public Policy, 29, 173–204.
  • Minsky, H. (1957). Central banking and money market changes. Quarterly Journal of Economics, 71(2) 171–87.
  • Moore, B. (1991). Money supply endogeneity: ‘reserve price setting’ or ‘reserve quantity setting?’, Journal of Post Keynesian Economics, 13(3): 404–13.
  • Nelson, E. (2002). Direct effects of base money on aggregate demand: theory and evidence, Journal of Monetary Economics, 49 (4), 687–708.
  • R.W. Hafera, Joseph H. Haslagb, Garett Jonesc (2007). On money and output: Is money redundant?, Journal of Monetary Economics, 54, 945–954
  • Rudebusch, G.D., Lars .E.O Svensson (1999). Policy rules for inflation targeting. In:Taylor, J.B. (Ed.) Monetary Policy Rules. (pp. 203-246) University of Chicago Press, Chicago. Rudebusch, G.D., Lars E.O. Svensson (2002). Eurosystem monetary targeting: lessons from US data, European Economic Review, 46, 417–442.
  • Sims, C.A. (1992). Interpreting the macroeconomic time series facts: the effects of monetary policy. European Economic Review, 36, 975–1000.
  • Taylor, J.B. (1993). Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195–214.
  • Taylor, J.B. (2001). The role of the exchange rate in monetary policy rules, American Economic Review, 91, 263–267.
  • Thirlwall, A. P. (1987). Nicholas Kaldor. The New York University Press, New York
  • Tobin, J. (1965). Money and economic growth, Econometrica, 33, 671-684.
There are 32 citations in total.

Details

Journal Section Makaleler
Authors

Mehmet Adak This is me

Publication Date March 10, 2014
Submission Date March 10, 2014
Published in Issue Year 2014 Volume: 4 Issue: 7

Cite

APA Adak, M. (2014). B.E.A Money Supply And Economic Growth; The Case Of Turkey. Yalova Sosyal Bilimler Dergisi, 4(7). https://doi.org/10.17828/yasbed.40253
AMA Adak M. B.E.A Money Supply And Economic Growth; The Case Of Turkey. YSBD. March 2014;4(7). doi:10.17828/yasbed.40253
Chicago Adak, Mehmet. “B.E.A Money Supply And Economic Growth; The Case Of Turkey”. Yalova Sosyal Bilimler Dergisi 4, no. 7 (March 2014). https://doi.org/10.17828/yasbed.40253.
EndNote Adak M (March 1, 2014) B.E.A Money Supply And Economic Growth; The Case Of Turkey. Yalova Sosyal Bilimler Dergisi 4 7
IEEE M. Adak, “B.E.A Money Supply And Economic Growth; The Case Of Turkey”, YSBD, vol. 4, no. 7, 2014, doi: 10.17828/yasbed.40253.
ISNAD Adak, Mehmet. “B.E.A Money Supply And Economic Growth; The Case Of Turkey”. Yalova Sosyal Bilimler Dergisi 4/7 (March 2014). https://doi.org/10.17828/yasbed.40253.
JAMA Adak M. B.E.A Money Supply And Economic Growth; The Case Of Turkey. YSBD. 2014;4. doi:10.17828/yasbed.40253.
MLA Adak, Mehmet. “B.E.A Money Supply And Economic Growth; The Case Of Turkey”. Yalova Sosyal Bilimler Dergisi, vol. 4, no. 7, 2014, doi:10.17828/yasbed.40253.
Vancouver Adak M. B.E.A Money Supply And Economic Growth; The Case Of Turkey. YSBD. 2014;4(7).
 Download Cover Image