MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACH
This paper examines the long run and short run dynamics of M2 money demand with effective exchange rate, weighted interest rate of one month term deposits and quarterly seasonally adjusted gross domestic product. Monthly data between 1995Q4-2013Q3 has been taken to estimate linkage between M2 moneta...
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| Format: | Article |
| Language: | English |
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Selcuk University Press
2014-12-01
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| Series: | Sosyal Ekonomik Araştırmalar Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/288828 |
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| _version_ | 1832557982200627200 |
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| author | Melih Özçalık |
| author_facet | Melih Özçalık |
| author_sort | Melih Özçalık |
| collection | DOAJ |
| description | This paper examines the long run and short run dynamics of M2 money demand with effective exchange rate, weighted interest rate of one month term deposits and quarterly seasonally adjusted gross domestic product. Monthly data between 1995Q4-2013Q3 has been taken to estimate linkage between M2 monetary aggregate and macroeconomics factors. The Autoregressive Distributed Lag (ARDL) approach which is accepted as an analytical cointegration techniqueis used to determine the short-run and long-run relationships. According to results we found a long-run and short-run relationship between M2 and interest rate and GDP. CUSUM and CUSUM-Q tests indicate money demand function is stable in the first test, while it’s not stable in the second test even in the long-run and short-run. |
| format | Article |
| id | doaj-art-a3e4cb935b6d44e89e43c3157e465375 |
| institution | Kabale University |
| issn | 2148-3043 |
| language | English |
| publishDate | 2014-12-01 |
| publisher | Selcuk University Press |
| record_format | Article |
| series | Sosyal Ekonomik Araştırmalar Dergisi |
| spelling | doaj-art-a3e4cb935b6d44e89e43c3157e4653752025-02-03T01:45:42ZengSelcuk University PressSosyal Ekonomik Araştırmalar Dergisi2148-30432014-12-01142817218710.30976/susead.302206154MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACHMelih ÖzçalıkThis paper examines the long run and short run dynamics of M2 money demand with effective exchange rate, weighted interest rate of one month term deposits and quarterly seasonally adjusted gross domestic product. Monthly data between 1995Q4-2013Q3 has been taken to estimate linkage between M2 monetary aggregate and macroeconomics factors. The Autoregressive Distributed Lag (ARDL) approach which is accepted as an analytical cointegration techniqueis used to determine the short-run and long-run relationships. According to results we found a long-run and short-run relationship between M2 and interest rate and GDP. CUSUM and CUSUM-Q tests indicate money demand function is stable in the first test, while it’s not stable in the second test even in the long-run and short-run.https://dergipark.org.tr/tr/download/article-file/288828money demand turkey ardlpara talebitürkiyeardl |
| spellingShingle | Melih Özçalık MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACH Sosyal Ekonomik Araştırmalar Dergisi money demand turkey ardl para talebi türkiye ardl |
| title | MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACH |
| title_full | MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACH |
| title_fullStr | MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACH |
| title_full_unstemmed | MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACH |
| title_short | MONEY DEMAND FUNCTION IN TURKEY: AN ARDL APPROACH |
| title_sort | money demand function in turkey an ardl approach |
| topic | money demand turkey ardl para talebi türkiye ardl |
| url | https://dergipark.org.tr/tr/download/article-file/288828 |
| work_keys_str_mv | AT melihozcalık moneydemandfunctioninturkeyanardlapproach |