Akbas, Yusuf Ekrem; Sancar, Canan

In this paper, the relationship between inflation-interest rate and output level for the period between 2000M1-2015M12 in Turkey is evaluated in terms of Monetarist and New Keynesian perspective. These relationships among the variables are analysed through linear and non-linear methods. As a result of the analysis, it is concluded that the interest rate does not have a significant effect on the output level. Also, it was determined that there is a short-term as well as a long-term negative relationship from the interest rate towards inflation. It was concluded that the monetary policy cannot affect the real output, but the inflation. These results show that the Monetarist perspective is more valid for the post 2000 period in Turkey.

Akbas, Yusuf Ekrem; Senturk, Mehmet; Sancar, Canan; Akyazi, Haydar

In this study, it was analysed if there is a short and long term relationship among the current deficit, short-term capital movements and the economic growth within the periods of 1998Q1-2011Q4 in Turkey. It was used to Autoregressive Distributed Lag model for analyzing the series. As a result of the Autoregressive Distributed Lag model test, it was confirmed the co-integration relationship among the series related to current deficit, economic growth and short term capital flows in short term and long term.