Model
Digital Document
Publisher
Florida Atlantic University
Description
This study analyzes the formulation of monetary policy in the Turkish
economy on the basis of intermediate policy targets. Two monetary aggregates
and four credit aggregates are identified as potential intermediate targets of
monetary policy. The causal relationship between these variables and GNP as
well as prices is estimated by utilizing Granger and Sims tests for causality. The
degree to which these targets are controlled by changes in the monetary base is
examined by using regression analysis. Finally, this study briefly examines the
major sources of the monetary base in the Turkish economy.
economy on the basis of intermediate policy targets. Two monetary aggregates
and four credit aggregates are identified as potential intermediate targets of
monetary policy. The causal relationship between these variables and GNP as
well as prices is estimated by utilizing Granger and Sims tests for causality. The
degree to which these targets are controlled by changes in the monetary base is
examined by using regression analysis. Finally, this study briefly examines the
major sources of the monetary base in the Turkish economy.
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