Berument, HakanDenaux, Z.Yalcin, Y.2016-02-082016-02-0820120003-6846http://hdl.handle.net/11693/21246This 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.EnglishAgnostic identificationMonetary policyVector autoregressionDemand analysisInvestmentMacroeconomicsModel testMonetary policyPolicy approachVariance analysisVector autoregressionTurkeyArticle10.1080/00036846.2011.5641511466-4283