The influence of money and the rate of interest on the rate of inflation in a financially repressed economy: the case of Turkey

Togan, Sübidey

doi:10.1080/00036848700000085

Cited by 23 publications

(15 citation statements)

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“…On the other hand, Benderly and Zwick (1985) and Jones and Uri (1987) found that money supply caused inflation for the USA. For less developed countries, Togan (1987), Fadil (1989), Jones and Sattar (1988) and Parikh (1990), among others, reported mixed results.…”

Section: Theoretical and Methodological Aspectsmentioning

confidence: 91%

The Role of Money in Saudi Arabia: A Dynamic Analysis

Al-Bazai¹

1999

eco

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ABSTRACT. This paper examines the role of money in the economy of Saudi Arabia using a vector autoregressive approach (VAR). Unit root tests show that logs of money supply (LM1), non-oil GDP (LNOY), and price level (LP) are difference stationary and cointegrated. Variance decompositions and impulse response functions reveal that there exists a bi-directional causation between money supply and nominal non-oil GDP and a unidirectional causation runs from LM1 to LP and from LNOY to LP. These findings suggest that inflation in Saudi Arabia may happen as a result of bottlenecks in supply side and/or a growth in money supply more than the growth in income. These results also lend partial support to the monetarist theory of inflation. Based on these results, it can be said that Saudi Monetary Agency (SAMA) might be able to successfully maintain price stability at consumer's level by targeting narrow money stock. However, tight monetary policy could have a strong feedback on output. Therefore, simultaneous fiscal measures may help in achieving a longer-term sustainable economic growth.

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Section: Theoretical and Methodological Aspectsmentioning

confidence: 91%

The Role of Money in Saudi Arabia: A Dynamic Analysis

Al-Bazai¹

1999

eco

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“…The Turkish and Latin American countries' experiences of financial repression in the 1960s and 1970s are good examples. During the 1970s, the nominal interest rates were regulated by the Turkish authorities and fixed below the prevailing inflation rate, Togan (1987). In Latin American countries, Vogel and Baser (1976, p. 49) comment that 'Widespread controls over nominal rates of interest on loans and deposits, together with many instances of high rates of inflation, make Latin America an ideal place to examine the relationship among inflation, financial repression, and capital formation'.…”

Section: Ti C H a R A C T E R I S T I C S O F T H E A L G E R I A N mentioning

confidence: 98%

“…In developing economies, the empirical research of the causal relationship between money supply and inflation is likewise contradictory with some studies indicating a bi-directional or feedback relationship (Aghevli and Khan, 1978) and others a unidirectional relationship (Togan, 1987).…”

Section: Introductionmentioning

confidence: 99%

Money, inflation and causality in a financially repressed economy: Algeria, 1970—88

Beltas

Jones

1993

Applied Economics

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“…The macroeconomy of Turkey continues to be of interest, reflected through research such as Atesoglu (1975), Fry (1980), and Togan (1987). Turkey's economy has been market-oriented since the 1950s.…”

Section: Introductionmentioning

confidence: 99%

Money, output and prices in Turkey

Atesoglu

Dutkowsky²

1995

Applied Economics Letters

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The determination of aggregate output and the price level in Turkey is examined. Empirical results indicate that the Turkish economy behaves consistent with predictions of a simple real business cycle model. Output follows an autoregressive structure with trend. Monetary policy is neutral and the results point to unitary elasticity between money and prices. The findings are generally robust to estimations in levels or first differences, and hold for either the narrow or broad money stock. The results suggest a modelling and policy strategy which may be relevant for other semi-industrialized countries.

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The influence of money and the rate of interest on the rate of inflation in a financially repressed economy: the case of Turkey

Cited by 23 publications

References 1 publication

The Role of Money in Saudi Arabia: A Dynamic Analysis

The Role of Money in Saudi Arabia: A Dynamic Analysis

Money, inflation and causality in a financially repressed economy: Algeria, 1970—88

Money, output and prices in Turkey

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