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The impact of money supply on the real sector during the Covid-19 pandemic: Evidence from OECD countries

Author

Listed:
  • Kerim Sinan Alcin

    (Kirklareli University / Turkiye)

  • Merve Hamzaoglu

    (Istanbul Kultur University / Turkiye)

  • Derya Zayim

    (Istanbul Technical University / Turkiye)

Abstract

Declared as a pandemic on March 11, 2020, COVID-19 caused a “sudden stop†in the world economy, resulting in both supply and demand shock. Most of the countries responded by monetary expansion to tackle the global economic issue. In this study we aim to find the impacts of these economic policies during COVID 19 on global economy. Our sample includes 33 of OECD countries. We estimate the impact of monetary expansion on the real economy with a linear regression model. The results show that the monetary policy has positively and significantly impacted economic growth even after controlling for fiscal policies.

Suggested Citation

  • Kerim Sinan Alcin & Merve Hamzaoglu & Derya Zayim, 2023. "The impact of money supply on the real sector during the Covid-19 pandemic: Evidence from OECD countries," JOURNAL OF LIFE ECONOMICS, Holistence Publications, vol. 10(3), pages 127-140.
  • Handle: RePEc:jle:journl:jlecon2060
    DOI: 10.15637/jlecon.2060
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