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Yıl 2017, Cilt 6, Sayı 2, 61 - 69, 30.06.2017
https://doi.org/10.17261/Pressacademia.2017.495

Öz

Kaynakça

  • Ahmad and Ahmed (2006). The Long-run and Short-run Endogeneity of Money Supply in Pakistan: An Empirical Investigation. Research Bulletin, 2(1), State Bank of Pakistan.
  • Alesina, A., and Summers, L. H. (1993). Central bank independence and macroeconomic performance: some comparative evidence. Journal of Money, Credit and Banking, 25(2), 151-162.
  • AYBAR, Sedat, HARRIS, Laurence (1988), “Credibility Models of Central Bank Independence and the Case of Turkey”, METU Studies in Development, C.25, S. 4, 535-558.
  • Barro, R. J., and Gordon, D. B. (1983). Rules, discretion and reputation in a model of monetary policy. Journal of monetary economics, 12(1), 101-121.
  • Bernanke, B. S., and Gertler, M. (1995). Inside the black box: the credit channel of monetary policy transmission (No. w5146). National bureau of economic research.
  • ÇİFTER, Atilla, ÖZÜN, Alper (2007), “The Monetary Transmission Mechanism in the New Economy: Evidence from Turkey (1997-2006)”, South East European Journal of Economics and Business, C. 2, S. 1, 15-24.
  • Fischer, S., and Modigliani, F. (1978). Towards an understanding of the real effects and costs of inflation. Review of World Economics, 114(4), 810-833.
  • Fischer, S. (1995). Central-bank independence revisited. The American Economic Review, 85(2), 201-206.
  • Friedman, B. M. (1990). Targets and instruments of monetary policy. Handbook of monetary economics, 2, 1185-1230.
  • Friedman, M. (1959). A program for monetary stability (Vol. 3). Fordham University Press.
  • Friedman, M., and Schwartz, A. (1963). A monetary history of the United States.
  • Friedman, M. (1968). The role of monetary policy.
  • Friedman, M., and Schwartz, A. J. (1975). Money and business cycles. In The state of monetary economics (pp. 32-78). NBER.
  • Friedman, Milton. "Nobel lecture: inflation and unemployment." Journal of political economy 85.3 (1977): 451-472.
  • Geraats, P. M. (2002). Central bank transparency. The economic journal, 112(483).
  • Giuseppe Fontana (2003), “Rethinking Endogenous Money: A Constructive Interpretation Of The Debate Between Horizontalist And Structuralists,” Metroeconomica, 55:4, S.367-385.
  • HOWELLS, Phillip, HUSSEIN, Khalid (1998), “The Endogeneity of Money: Evidence from G7”, Scottish Journal of Political Economy, C. 45, S. 3, 329-40.
  • IŞIK, Sayım (2000), Para Arzının Endojenliği Tartışması: Türkiye Örneği, Doktora Tezi, Hacettepe Üniversitesi Sosyal Bilimler Enstitüsü, Ankara.
  • Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of economic dynamics and control, 12(2-3), 231-254.
  • Johansen, S. (1995). Identifying restrictions of linear equations with applications to simultaneous equations and cointegration. Journal of econometrics, 69(1), 111-132.
  • Kaldor, N. (1985). The scourge of monetarism. Oxford; New York: Oxford University Press.
  • KARABULUT, Gökhan (2005), “Paranın Endojenliği ve Türkiye Örneği”, Yönetim/İstanbul Üniversitesi İşletme Fakültesi İşletme İktisadı Enstitüsü Dergisi, C. 16, S. 51, 25-31.
  • Keynes, J. (1964). M. 1936. The general theory of employment, interest and money, 154-6.
  • Kydland, F. E., and Prescott, E. C. (1977). Rules rather than discretion: The inconsistency of optimal plans. Journal of political economy, 85(3), 473-491.
  • Lavoie, M. (1984). The endogenous flow of credit and the post Keynesian theory of money. Journal of Economic Issues, 18(3), 771-797.
  • Lavoie, M. (1985). Credit and money: the dynamic circuit, overdraft economics, and post-Keynesian economics. In Money and Macro Policy (pp. 63-84). Springer Netherlands.
  • Lavoie, M. (2005). Monetary base endogeneity and the new procedures of the asset-based Canadian and American monetary systems. Journal of Post Keynesian Economics, 27(4), 689-708.
  • Mankiw, N. G. (2001). The inexorable and mysterious tradeoff between inflation and unemployment. The Economic Journal, 111(471), 4561.
  • McCallum, B. T. (1988, December). Robustness properties of a rule for monetary policy. In Carnegie-Rochester conference series on public policy (Vol. 29, pp. 173-203). North-Holland.
  • Moore, B. J. (1979). The endogenous money stock. Journal of Post Keynesian Economics, 2(1), 49-70.
  • Moore, B. J. (1983). Unpacking the post Keynesian black box: bank lending and the money supply. Journal of Post Keynesian Economics, 5(4), 537-556.
  • MOORE, Basil J. (1989), “The Endogeneity of Credit Money”, Review of Political Economy, C. 1, S. 1, 65-93.
  • Nayan, S., Kadir, N., Abdullah, M. S., and Ahmad, M. (2013). Post Keynesian endogeneity of money supply: Panel evidence. Procedia Economics and Finance, 7, 48-54.
  • Niggle, C. J. (1991). The endogenous money supply theory: an institutionalists appraisal. Journal of Economic Issues, 25(1), 137-151.
  • Özgür, G. (2011). Türkiye Ekonomisinde Para Arzının İçsel Süreci. Ekonomik Yaklasim, 22(78), 67-90.
  • Panagopoulos, Y., and Spiliotis, A. (1998). The determinants of commercial banks' lending behavior: some evidence for Greece. Journal of Post Keynesian Economics, 20(4), 649-672.
  • Pantula, S. G. (1989). Testing for unit roots in time series data. Econometric Theory, 5(02), 256-271.
  • Phillips, A. W. (1958). The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861– 19571. Economica, 25(100), 283-299.
  • Pollin, R. (1991). Two theories of money supply endogeneity: some empirical evidence. Journal of Post Keynesian Economics, 13(3), 366396.
  • Poole, William. "Optimal choice of monetary policy instruments in a simple stochastic macro model." The Quarterly Journal of Economics 84.2 (1970): 197-216.
  • Sheshinski, E., and Weiss, Y. (1977). Inflation and costs of price adjustment. The Review of Economic Studies, 44(2), 287-303.
  • Taylor, J. B. (2001). The role of the exchange rate in monetary-policy rules. The American Economic Review, 91(2), 263-267.
  • Tobin, J. (1970). Money and income: post hoc ergo propter hoc?. The Quarterly Journal of Economics, 301-317.
  • Vera, A. P. (2001). The endogenous money hypothesis: some evidence from Spain (1987-1998). Journal of Post Keynesian Economics, 23(3), 509-526.
  • Woodford, M. (2001). Monetary policy in the information economy (No. w8674). National Bureau of Economic Research.

OPTIMAL POLICY INSTRUMENT SELECTION IN MONETARY POLICY: ENDOGENEITY OF MONEY SUPPLY

Yıl 2017, Cilt 6, Sayı 2, 61 - 69, 30.06.2017
https://doi.org/10.17261/Pressacademia.2017.495

Öz

Purpose- Nowadays, the central bank's primary objective is price stability which is defined as low and stable inflation. The central bank has to fulfill some institutional and operational conditions to achieve this goal. One of the operational conditions is the selection of the appropriate policy instrument to implement the monetary policy. The central bank can choose interest rate or monetary base as policy instrument. The main question of this paper is whether the monetary base the optimal instrument. The choice of monetary base as a policy instrument is dependent on the exogeneity of money supply, which means that the money supply is controllable by monetary base.  Methodology- This paper investigates endogeneity of money supply of Turkey for a sample period of 1990-2016 using Johansen cointegration test. 

Findings- As a research method, the Johansen cointegration test and VECM is used to show long-run relationships and causality between variables and Granger causality test is used to examine short-run causality between the variables. 

Conclusion-  It is seen that CBRT has very limited control over money supply, thus monetary base may not be optimal policy instrument to ensure price stability.   

Kaynakça

  • Ahmad and Ahmed (2006). The Long-run and Short-run Endogeneity of Money Supply in Pakistan: An Empirical Investigation. Research Bulletin, 2(1), State Bank of Pakistan.
  • Alesina, A., and Summers, L. H. (1993). Central bank independence and macroeconomic performance: some comparative evidence. Journal of Money, Credit and Banking, 25(2), 151-162.
  • AYBAR, Sedat, HARRIS, Laurence (1988), “Credibility Models of Central Bank Independence and the Case of Turkey”, METU Studies in Development, C.25, S. 4, 535-558.
  • Barro, R. J., and Gordon, D. B. (1983). Rules, discretion and reputation in a model of monetary policy. Journal of monetary economics, 12(1), 101-121.
  • Bernanke, B. S., and Gertler, M. (1995). Inside the black box: the credit channel of monetary policy transmission (No. w5146). National bureau of economic research.
  • ÇİFTER, Atilla, ÖZÜN, Alper (2007), “The Monetary Transmission Mechanism in the New Economy: Evidence from Turkey (1997-2006)”, South East European Journal of Economics and Business, C. 2, S. 1, 15-24.
  • Fischer, S., and Modigliani, F. (1978). Towards an understanding of the real effects and costs of inflation. Review of World Economics, 114(4), 810-833.
  • Fischer, S. (1995). Central-bank independence revisited. The American Economic Review, 85(2), 201-206.
  • Friedman, B. M. (1990). Targets and instruments of monetary policy. Handbook of monetary economics, 2, 1185-1230.
  • Friedman, M. (1959). A program for monetary stability (Vol. 3). Fordham University Press.
  • Friedman, M., and Schwartz, A. (1963). A monetary history of the United States.
  • Friedman, M. (1968). The role of monetary policy.
  • Friedman, M., and Schwartz, A. J. (1975). Money and business cycles. In The state of monetary economics (pp. 32-78). NBER.
  • Friedman, Milton. "Nobel lecture: inflation and unemployment." Journal of political economy 85.3 (1977): 451-472.
  • Geraats, P. M. (2002). Central bank transparency. The economic journal, 112(483).
  • Giuseppe Fontana (2003), “Rethinking Endogenous Money: A Constructive Interpretation Of The Debate Between Horizontalist And Structuralists,” Metroeconomica, 55:4, S.367-385.
  • HOWELLS, Phillip, HUSSEIN, Khalid (1998), “The Endogeneity of Money: Evidence from G7”, Scottish Journal of Political Economy, C. 45, S. 3, 329-40.
  • IŞIK, Sayım (2000), Para Arzının Endojenliği Tartışması: Türkiye Örneği, Doktora Tezi, Hacettepe Üniversitesi Sosyal Bilimler Enstitüsü, Ankara.
  • Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of economic dynamics and control, 12(2-3), 231-254.
  • Johansen, S. (1995). Identifying restrictions of linear equations with applications to simultaneous equations and cointegration. Journal of econometrics, 69(1), 111-132.
  • Kaldor, N. (1985). The scourge of monetarism. Oxford; New York: Oxford University Press.
  • KARABULUT, Gökhan (2005), “Paranın Endojenliği ve Türkiye Örneği”, Yönetim/İstanbul Üniversitesi İşletme Fakültesi İşletme İktisadı Enstitüsü Dergisi, C. 16, S. 51, 25-31.
  • Keynes, J. (1964). M. 1936. The general theory of employment, interest and money, 154-6.
  • Kydland, F. E., and Prescott, E. C. (1977). Rules rather than discretion: The inconsistency of optimal plans. Journal of political economy, 85(3), 473-491.
  • Lavoie, M. (1984). The endogenous flow of credit and the post Keynesian theory of money. Journal of Economic Issues, 18(3), 771-797.
  • Lavoie, M. (1985). Credit and money: the dynamic circuit, overdraft economics, and post-Keynesian economics. In Money and Macro Policy (pp. 63-84). Springer Netherlands.
  • Lavoie, M. (2005). Monetary base endogeneity and the new procedures of the asset-based Canadian and American monetary systems. Journal of Post Keynesian Economics, 27(4), 689-708.
  • Mankiw, N. G. (2001). The inexorable and mysterious tradeoff between inflation and unemployment. The Economic Journal, 111(471), 4561.
  • McCallum, B. T. (1988, December). Robustness properties of a rule for monetary policy. In Carnegie-Rochester conference series on public policy (Vol. 29, pp. 173-203). North-Holland.
  • Moore, B. J. (1979). The endogenous money stock. Journal of Post Keynesian Economics, 2(1), 49-70.
  • Moore, B. J. (1983). Unpacking the post Keynesian black box: bank lending and the money supply. Journal of Post Keynesian Economics, 5(4), 537-556.
  • MOORE, Basil J. (1989), “The Endogeneity of Credit Money”, Review of Political Economy, C. 1, S. 1, 65-93.
  • Nayan, S., Kadir, N., Abdullah, M. S., and Ahmad, M. (2013). Post Keynesian endogeneity of money supply: Panel evidence. Procedia Economics and Finance, 7, 48-54.
  • Niggle, C. J. (1991). The endogenous money supply theory: an institutionalists appraisal. Journal of Economic Issues, 25(1), 137-151.
  • Özgür, G. (2011). Türkiye Ekonomisinde Para Arzının İçsel Süreci. Ekonomik Yaklasim, 22(78), 67-90.
  • Panagopoulos, Y., and Spiliotis, A. (1998). The determinants of commercial banks' lending behavior: some evidence for Greece. Journal of Post Keynesian Economics, 20(4), 649-672.
  • Pantula, S. G. (1989). Testing for unit roots in time series data. Econometric Theory, 5(02), 256-271.
  • Phillips, A. W. (1958). The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861– 19571. Economica, 25(100), 283-299.
  • Pollin, R. (1991). Two theories of money supply endogeneity: some empirical evidence. Journal of Post Keynesian Economics, 13(3), 366396.
  • Poole, William. "Optimal choice of monetary policy instruments in a simple stochastic macro model." The Quarterly Journal of Economics 84.2 (1970): 197-216.
  • Sheshinski, E., and Weiss, Y. (1977). Inflation and costs of price adjustment. The Review of Economic Studies, 44(2), 287-303.
  • Taylor, J. B. (2001). The role of the exchange rate in monetary-policy rules. The American Economic Review, 91(2), 263-267.
  • Tobin, J. (1970). Money and income: post hoc ergo propter hoc?. The Quarterly Journal of Economics, 301-317.
  • Vera, A. P. (2001). The endogenous money hypothesis: some evidence from Spain (1987-1998). Journal of Post Keynesian Economics, 23(3), 509-526.
  • Woodford, M. (2001). Monetary policy in the information economy (No. w8674). National Bureau of Economic Research.

Ayrıntılar

Konular Sosyal
Bölüm Articles
Yazarlar

Ahmet Incekara>


Akmyrat Amanov>

Yayımlanma Tarihi 30 Haziran 2017
Yayınlandığı Sayı Yıl 2017, Cilt 6, Sayı 2

Kaynak Göster

APA Incekara, A. & Amanov, A. (2017). OPTIMAL POLICY INSTRUMENT SELECTION IN MONETARY POLICY: ENDOGENEITY OF MONEY SUPPLY . Journal of Business Economics and Finance , 6 (2) , 61-69 . DOI: 10.17261/Pressacademia.2017.495

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