Regulating Check Use in Turkey
This paper develops a simple model of the market for checks in Turkey. The Central Bank controls the lump-sum amount that the drawee banks are legally responsible to pay per bad check. An increase in this amount is believed to support real economy. I show that banks will tend to restrict the quantity of checks when this responsibility is increased. A percentage point increase in banks' obligation per bad check could lead up to a 1.7 percent decline in the total supply of checks on the margin. This means that a rise in this obligation may harm the real economy rather than providing support.
Volume (Year): 12 (2012)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: Head Office, Istiklal Cad. 10 Ulus, 06100 Ankara|
Phone: (90 312) 507 5000
Fax: (90 312) 507 5640
Web page: http://www.tcmb.gov.tr/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McAndrews, James & Roberds, William, 1999.
"A General Equilibrium Analysis of Check Float,"
Journal of Financial Intermediation,
Elsevier, vol. 8(4), pages 353-377, October.
- James J. McAndrews & William Roberds, 1997. "A general equilibrium analysis of check float," FRB Atlanta Working Paper 97-4, Federal Reserve Bank of Atlanta.
- James J. McAndrews & William Roberds, 1999. "A general equilibrium analysis of check float," Staff Reports 84, Federal Reserve Bank of New York.
- Tumen, Semih, 2012. "Regulation and the market for checks," Economic Modelling, Elsevier, vol. 29(3), pages 858-867.
- Semih Tumen, 2010. "Regulation and the Market for Checks (Duzenlemeler ve Cek Piyasasi)," Working Papers 1006, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Ricardo Lagos, 2006. "Inside and outside money," Staff Report 374, Federal Reserve Bank of Minneapolis.
- Ping He & Lixin Huang & Randall Wright, 2005. "Money And Banking In Search Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(2), pages 637-670, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:tcb:cebare:v:12:y:2012:i:1:p:1-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()or () or ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.