The effectiveness of the monetary transmission mechanism channel in Turkey Cover Image

The effectiveness of the monetary transmission mechanism channel in Turkey
The effectiveness of the monetary transmission mechanism channel in Turkey

Author(s): Fatih Okur, Ömer Akkuş, Atakan Durmaz
Subject(s): Economy, Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: monetary transmission mechanism; credit channel; inflation; monetary policy;

Summary/Abstract: This study investigates on which channels the monetary transmission mechanism works effectively. In this context, quarterly data for the period 2005-2017 is used for Turkey and the variables used to determine the efficiency of the monetary transmission mechanism are analyzed by the VAR method. The obtained results indicate that the loans and reserves have a more effective role on the inflation as a channel of the monetary transmission mechanism. According to the long run results, while the exchange rate and reserves channel have a negative effect on the real GDP, it is revealed that loans have a positive effect on the real GDP in the long run stabilization.

  • Issue Year: 10/2019
  • Issue No: 1
  • Page Range: 161-180
  • Page Count: 20
  • Language: English