Author/Authors :
KÖKSEL, Bilge Gaziantep Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İktisat Böllümü, Turkey
Title Of Article :
THE ENDOGENEITY OF MONEY SUPPLY IN TURKISH ECONOMY: AN APPLICATION ON 2006-2014 PERIOD
Abstract :
Post Keynesian economists have argued that money supply is endogeneous. It means, central bank cannot control the money supply and money supply is determined by credit demand. The purpose of this study is to analyze money supply is endogeneous or not for the Turkish economy in 2006:1 -2014:11 period by using Johansen cointegration method. The banking sector dominates the financial system in Turkey. For that reason bank credits to the private sector are taken as an independent variable; money supply in the form of M2 is a dependent variable. According to the empirical findings in the analysis it is concluded that, money supply is endogeneous in Turkey in that period.
NaturalLanguageKeyword :
Endogeneous Money Supply , Johansen Cointegration Analysis , Turkish Economy
JournalTitle :
Journal Of Economics and Administrative Sciences, Ataturk University
