scholarly journals ENDOGENOUS MONEY SUPPLY: TURKISH ECONOMY (2011-2018)

2021 ◽  
Author(s):  
Leyla BAŞTAV
Keyword(s):  
Money Supply ◽  
Turkish Economy ◽  
Endogenous Money

scholarly journals Endogeneity of Money Supply: Evidence From Turkey

2017 ◽  
Vol 6 (1) ◽  
pp. 1 ◽  
Author(s):  
Oguzhan Cepni ◽  
Ibrahim Ethem Guney
Keyword(s):  
Interest Rates ◽  
Money Supply ◽  
Bank Loans ◽  
Economic Agents ◽  
Turkish Economy ◽  
Causality Tests ◽  
Endogenous Money ◽  
Money Creation ◽  
Lending Decisions ◽  
Theories Of Money

<p>There is a long discussion among academics and central bankers about the theories of money supply. According to the exogenous view, central banks have the full control over money supply via policy actions including the adjustments of interest rates and reserve ratios, both of which alter commercial banks’ lending decisions. However, the theory of endogenous money supply emphasizes the role of demand for bank loans in money creation. More specifically, banks create money by meeting the demand of economic agents. In this study, we investigate which of the money supply theories holds in Turkish economy for the period 2006-2015 by employing cointegration and causality tests. Our findings show that the causality runs from bank loans to money supply both in the short and long terms, which supports the endogenous view in a sense that central bank and the banks fully meet the total demand for money in Turkish economy.</p>

The Endogenous Money Supply

1988 ◽  
Vol 10 (3) ◽  
pp. 372-385 ◽  
Author(s):  
Basil J. Moore
Keyword(s):  
Money Supply ◽  
Endogenous Money

scholarly journals The Endogenous Money Hypothesis: an Empirical Study of The Saudi Arabia

2015 ◽  
Vol 1 (03) ◽  
Author(s):  
Dr. Saud Almutair
Keyword(s):  
Saudi Arabia ◽  
Money Supply ◽  
Wald Test ◽  
Bank Loans ◽  
Long Run ◽  
Demand Deposit ◽  
Short Run ◽  
Endogenous Money ◽  
Using Data ◽  
Vector Error Correction Models

In this paper, the endogenous money supply hypothesis in Saudi Arabia is examined using data from January 1997 to February 2015. The study uses Johansen cointegration technique and Vector Error Correction models (VECM) for cointegrated series.The long run causality was found to run from bank loans (BL) and from demand deposit (TD) to the money supply (MS1), and not from MS1to BL, as the mainstream view. The endogenios money supply hypothesis is reinforced by the long run causality running from BL to TD. For MS2, the study verifies a long run causality running from BL and TD to MS2. Therefore, the money supply of Saudi Arabia whether using MS1 or MS2 is endogenous in the long run. The result of short run causality with regard of MS1 using Wald Test does not confirm money supply endogeneity in the short run. Short run causality using Granger with regard to MS2 assures short run causality running from TD and BL to MS2. The implication of this work is that Saudi monetary agency can not control the money supply in the long run. It only has some influence on MS1 in the short run.

scholarly journals Stability Of Money Multipliers: Evidence From Turkey

2011 ◽  
Vol 4 (10) ◽  
Author(s):  
Cem Saatcioglu ◽  
H. Levent Korap ◽  
Ara G. Volkan
Keyword(s):  
Economic Policy ◽  
Money Supply ◽  
Monetary Policies ◽  
Monetary Aggregates ◽  
Research Results ◽  
Money Multiplier ◽  
Turkish Economy ◽  
Multiplier Process

This paper investigates whether the money multiplier process in the Turkish economy is stable and can be forecasted. Research results show that the processes which convert the base money supply into the final monetary aggregates are unstable and decrease the effectiveness of monetary policies pursued by the CBRT. In addition, the sub-components of the money multiplier do not support a stable money multiplier process, indicating that traditional monetarist prescriptions for the conduct of economic policy are not appropriate for the Turkish economy. 

Money Supply and Inflation Relationship in the Turkish Economy

2006 ◽  
Vol 6 (9) ◽  
pp. 2083-2087 ◽  
Author(s):  
Cahit Gungor ◽  
Ali Berk .
Keyword(s):  
Money Supply ◽  
Turkish Economy
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