Turkish monetary policy and components of aggregate demand: a VAR analysis with sign restrictions model
Author
Berument, Hakan
Denaux, Z.
Yalcin, Y.
Date
2012Source Title
Applied Economics
Print ISSN
0003-6846
Electronic ISSN
1466-4283
Publisher
Routledge
Volume
44
Issue
36
Pages
4787 - 4798
Language
English
Type
ArticleItem Usage Stats
135
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Abstract
This article estimates the effects of monetary policy on components of aggregate demand using quarterly data on Turkish economy from 1987-2008 by means of structural Vector Autoregression (VAR) methodology. This study adopts Uhlig's (2005) sign restrictions on the impulse responses of main macroeconomic variables to identify monetary shock. This study finds that expansionary monetary policy stimulates output through consumption and investment in the short-run. However, expansionary monetary policy is ineffective in the long-run. © 2012 Taylor & Francis.
Keywords
Agnostic identificationMonetary policy
Vector autoregression
Demand analysis
Investment
Macroeconomics
Model test
Monetary policy
Policy approach
Variance analysis
Vector autoregression
Turkey