Ibrahim ARSLAN () (Gaziantep Üniversitesi I.I.B.F.) Sevda YAPRAKLI () (Atatürk Üniversitesi I.I.B.F.)
Abstract
In this study, one of the most controversial debates of economics literature, namely the relationship between bank credits and inflation is studied in the context of Turkish economy. In the study, covering 1983-2007 period, total bank credits and inflation (PPI) are used. The relationships between bank credits and inflation rate are analyzed econometrically by employing Johansen cointegration analysis and error correction model. According to the results, bank credits is negatively effected by inflation, while inflation is positively effected by bank credits in the long run. Furthermore, error correction-augmented Granger causality tests show that bi-directional causality exists between bank credits and inflation.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Find related papers by JEL classification: C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data) E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy