ANALYSIS OF THE RELATIONSHIP BETWEEN INFLATION, BUDGET DEFICIT AND MONEY SUPPLY IN TURKEY BY ARDL APPROACH 1980-2017

Begüm ERDİL ŞAHİN

doi:10.15637/jlecon.6.018

Yazarlar

Begüm ERDİL ŞAHİN İstanbul Kültür Üniversitesi/TÜRKİYE https://orcid.org/0000-0003-0452-1308

DOI:

https://doi.org/10.15637/jlecon.6.018

Anahtar Kelimeler:

Inflation, Deficit, Money Supply, Turkey, ARDL

Özet

Inflation is considered as a monetary phenomenon and its increase is linked with money supply according to the Monetarist view. In other words, the increase in budget deficits leads to an increase in money supply and as a result, inflation rates rise. Inflation is based on fiscal policies rather than monetary policies according to Price Level Fiscal Theory. Accordingly, increasing budget deficits leads to increases in loans, thus causes interest rates to rise and consequently inflation rises as money supply increases. In this study, the relationship between inflation, budget deficit and money supply in Turkey is analyzed using the ARDL bounds testing approach for the 1980-2017 period. According to the empirical results, there was a positive and significant relationship between inflation and budget deficit both in the long and short term.
Keywords: Inflation, Deficit, Money Supply, Turkey, ARDL
Jel Codes: E31, E51, E52

İndirmeler

İndirme verileri henüz mevcut değil.

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