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On stability of the demand for money in a developing OECD country: the case of Turkey

On stability of the demand for money in a developing OECD country: the case of Turkey

Halicioglu, Ferda and Ugur, Mehmet ORCID: 0000-0003-3891-3641 (2005) On stability of the demand for money in a developing OECD country: the case of Turkey. Global Business and Economics Review, 7 (2/3). pp. 203-213. ISSN 1097-4954 (Print), 1745-1329 (Online) (doi:10.1504/GBER.2005.007616)

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Abstract

This paper empirically analyses the stability of the narrow money demand function (M1) in Turkey for the period 1950–2002. As part of the IMF sponsored stabilisation programme, Turkey has been pursuing base money targets. To ascertain whether this policy framework satisfies the necessary condition for effectiveness, we estimate and test for the stability of Turkish M1 by employing a recent single cointegration procedure proposed by Pesaran et al. (2001) along with the CUSUM and CUSUMSQ stability tests. We demonstrate that there is a stable money demand function and it could be used as an intermediate target of monetary policy in Turkey.

Item Type: Article
Additional Information: The final, definitive version of this paper has been published in Global Business and Economics Review, Vol. 7/ No. 2/3, 2004 by Inderscience Publishers.
Uncontrolled Keywords: cointegration, money demand, stability, Turkey, base money targets, monetary policy
Subjects: H Social Sciences > HC Economic History and Conditions
J Political Science > JN Political institutions (Europe)
Faculty / Department / Research Group: Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Faculty of Business > Department of International Business & Economics
Faculty of Business
Related URLs:
Last Modified: 02 Nov 2016 13:52
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
URI: http://gala.gre.ac.uk/id/eprint/3978

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