The impact of money supply on the real sector during the Covid-19 pandemic: Evidence from OECD countries

Kerim Sinan Alçın; Merve Hamzaoğlu; Derya Zayim

doi:10.15637/jlecon.2060

Authors

Kerim Sinan Alçın Kırklareli University / Türkiye https://orcid.org/0000-0002-2330-0693
Merve Hamzaoğlu Istanbul Kültür University / Türkiye https://orcid.org/0000-0001-6240-7613
Derya Zayim İstanbul Technical University / Türkiye https://orcid.org/0000-0001-8641-3014

DOI:

https://doi.org/10.15637/jlecon.2060

Keywords:

Money Supply Shock, Health Crisis, Financial Markets, COVID-19, OECD countries, Real Economy

Abstract

Declared as a pandemic on March 11, 2020, COVID-19 caused a “sudden stop” in the world economy, resulting in both supply and demand shock. Most of the countries responded by monetary expansion to tackle the global economic issue. In this study we aim to find the impacts of these economic policies during COVID 19 on global economy. Our sample includes 33 of OECD countries. We estimate the impact of monetary expansion on the real economy with a linear regression model. The results show that the monetary policy has positively and significantly impacted economic growth even after controlling for fiscal policies.

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Author Biography

Merve Hamzaoğlu, Istanbul Kültür University / Türkiye

Dr. Öğr. Üyesi

İSTANBUL KÜLTÜR ÜNİVERSİTESİ/İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİ/İKTİSAT BÖLÜMÜ/İKTİSAT PR.

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