Oltu Journal of Faculty of
Humanities and Social Sciences
Research Articles

The relative effectiveness of monetary and fiscal policies: The case of Turkey

1.

Kahramanmaraş Sütçü İmam Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümü, Kahramanmaraş, Türkiye

Oltu Journal of Faculty of Humanities and Social Sciences 2022; 3: 15-20
DOI: 10.54614/OJFHSS.2022.963981
Read: 1002 Downloads: 199 Published: 07 March 2022

Sustainable economic policies are considered important for the emergence of stable economic indicators in national economies. Especially since the 1990s, there have been many theoretical and empirical discussions on the effectiveness and importance of economic policies. The core of these discussions is the policies advocated by the Keynesian and Classical views. The debates that take place on the basis of the effectiveness of monetary and fiscal policies continue today. Therefore, the determination of the relative efficiency of monetary and fiscal policies, which is the most fundamental area of discussion of economic policies, becomes important. In this study, the Vector Autoregressive (VAR) method was applied with the data of the period 2004:Q1-2020:Q3 in order to distinguish the relative effectiveness of monetary and fiscal policies in Turkey. In the model established, the relative change in the real gross domestic product (GDP) as the dependent variable, while the explanatory variables are the relative change in the monetary policy rate, which is the indicator of monetary policy; The fiscal policy indicator is the relative change in real primary budget expenditures. Findings show that monetary policies were more effective than fiscal policies in this period.

Cite this article: Özbek, S., & Uğur, B. (2022). The relative effectiveness of monetary and fiscal policies: The case of Turkey. Oltu Journal of Faculty of Humanities and Social Sciences, 3(1), 15-20.

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