The relationship between money supply and inflation is one of the most popular and widely researched topics in economic theory. The aim of this paper is to investigate the hypothesis that there is a close relationship between money supply, inflation rate, interest rate and exchange rate, by using 2006:Q4-2018:Q4 quarterly data for Turkey. The ARDL boundary testing approach is used to test this hypothesis, since the interest variable is I(1) and the others are I(0). According to the analysis results, a significant and positive relationship is found between interest rate and inflation in the long run, but this relationship is very weak. On the other hand, there is no statistically significant relationship between exchange rate and inflation. Our analysis results also show that there is a statistically significant and positive relationship between M2 money supply and inflation in the long run. However, this relationship is not a strong one as stated in the quantity theory of money. Therefore, it is necessary to make emphasis on the supply-side factors for the determinants of inflation in Turkey.
Yayımlanma Tarihi : 31 Ağustos 2020
|APA||Kılavuz, E , Altınöz, B . (2020). Türkiye’de Para Arzı İle Enflasyon Arasındaki İlişki: ARDL Sınır Testi Yaklaşımı . Ekonomi Politika ve Finans Araştırmaları Dergisi , 5 (2) , 242-260 . DOI: 10.30784/epfad.708223|