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Original Article

Ekonomik Yaklasim. 2007; 18(65): 59-70


An Empirical Study on Determination of the Dominant Authority in the Inflationary Process of Turkish Economy

Fatma DAVARCIOĞLU ÖZAKTAŞ.

Abstract
In 1980s, the inflation literature has been enriched by questioning conventional causality relationship between the money growth and inflation. In this literature, the interaction between monetary and fiscal authority have been got more importance. Initially, in this study, the approaches that enriched the literature, has been described theoritically by using these relationships. Afterwards, in 1989:2-2004:4, for Turkish Economy, we tried to determined the relationship between the money and the finance authority by analyzing the impulse response functions. After, by using this knowledge, we also tried to commented the inflationary process. In treated period, the application results, suggests that a fiscal dominant policy exist in Turkish Economy and inflation is a fiscal driven monetary fact.

Key words: Monetary Growth, Budget Deficits, Inflation, Ricardian Equivalence, Dominant Authority.



Article Language: Turkish English



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