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Para ve Maliye Politikasının Karşılaştırmalı Analizi: Türkiye için Ekonometrik bir Analiz
[Comparative Analysis of Monetary and Fiscal Policy: An Econometric Case Study of Turkey]

Author

Listed:
  • Ebghaei, Felor

Abstract

Monetary and fiscal policies are two main policies which play an important role in the changes of economic activities. Monetary policy is applied by a central bank or monetary authority while fiscal policy is set by the government. The relative effectiveness of monetary and fiscal policies is an issue which is continuously discussed but could not be reached to any solution. In fact, the essence of the issue is based on the Monetarist-Keynesian debate. Monetarists favour monetary policy while Keynesian favour fiscal policy in the sense of effectiveness. In this study, it has been examined whether monetary or fiscal policy is more effective in Turkish economy during the period of 1980 to 2012. In order to achieve, money supply (M2) and government expenditure have been used as a proxy for monetary and fiscal policies. According to the findings obtained from the results of Cointegration Vector Auto - Reqressive Models, fiscal policy is more effective than monetary policy in Turkish economy.

Suggested Citation

  • Ebghaei, Felor, 2014. "Para ve Maliye Politikasının Karşılaştırmalı Analizi: Türkiye için Ekonometrik bir Analiz [Comparative Analysis of Monetary and Fiscal Policy: An Econometric Case Study of Turkey]," MPRA Paper 77892, University Library of Munich, Germany, revised Mar 2017.
    • Handle: RePEc:pra:mprapa:77892
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    References listed on IDEAS

    as
    1. Hanif, Muhammad N. & Arby, Muhammad Farooq, 2003. "Monetary and Fiscal Policy Coordination," MPRA Paper 10307, University Library of Munich, Germany.
    2. Peter Kretzmer, 1992. "Monetary vs fiscal policy: new evidence on an old debate," Economic Review, Federal Reserve Bank of Kansas City, vol. 77(Q II), pages 21-30.
    3. Ansari, M. I., 2002. "Impact of financial development, money, and public spending on Malaysian national income: an econometric study," Journal of Asian Economics, Elsevier, vol. 13(1), pages 72-93.
    4. Barro, Robert J, 1978. "Unanticipated Money, Output, and the Price Level in the United States," Journal of Political Economy, University of Chicago Press, vol. 86(4), pages 549-580, August.
    5. Rodrigo Cerda & Hermann Gonzalez & Luis Felipe Lagos, 2006. "Is fiscal policy effective? Evidence for an emerging economy: Chile 1833-2000," Applied Economics Letters, Taylor & Francis Journals, vol. 13(9), pages 575-580.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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