Welcome to the InfoSci Platform
Reference Hub2
Monetary and Fiscal Policy Interactions: An Empirical Evidence from Turkey

Monetary and Fiscal Policy Interactions: An Empirical Evidence from Turkey

Asuman Oktayer, Nagihan Oktayer
Copyright: © 2016 |Pages: 27
ISBN13: 9781522500537|ISBN10: 1522500537|EISBN13: 9781522500544
DOI: 10.4018/978-1-5225-0053-7.ch020
Cite Chapter Cite Chapter

MLA

Oktayer, Asuman, and Nagihan Oktayer. "Monetary and Fiscal Policy Interactions: An Empirical Evidence from Turkey." Handbook of Research on Public Finance in Europe and the MENA Region, edited by M. Mustafa Erdoğdu and Bryan Christiansen, IGI Global, 2016, pp. 447-473. https://doi.org/10.4018/978-1-5225-0053-7.ch020

APA

Oktayer, A. & Oktayer, N. (2016). Monetary and Fiscal Policy Interactions: An Empirical Evidence from Turkey. In M. Erdoğdu & B. Christiansen (Eds.), Handbook of Research on Public Finance in Europe and the MENA Region (pp. 447-473). IGI Global. https://doi.org/10.4018/978-1-5225-0053-7.ch020

Chicago

Oktayer, Asuman, and Nagihan Oktayer. "Monetary and Fiscal Policy Interactions: An Empirical Evidence from Turkey." In Handbook of Research on Public Finance in Europe and the MENA Region, edited by M. Mustafa Erdoğdu and Bryan Christiansen, 447-473. Hershey, PA: IGI Global, 2016. https://doi.org/10.4018/978-1-5225-0053-7.ch020

Export Reference

Mendeley
Favorite

Abstract

While the role of fiscal policy in price level determination was neglected by the conventional theory, a new point of view was adapted by the Fiscal Theory of the Price Level. In the context of the new theory, monetary and fiscal policy interactions were taken into account and the role of fiscal policy was underlined. This paper investigates the monetary and fiscal policy coordination in Turkey during the period 1989.1-2012.2 and sub-periods 1989.1-2001.1 and 2001.2-2012.2. In order to reveal if financial policies are monetary dominant or fiscal dominant in aforementioned periods, bounds testing procedure is applied by using quarterly data. While the empirical test results related to the entire period of 1989.1-2012.2 and sub-period of 1989.1-2001.1 indicate fiscal policy dominant regime, the findings regarding 2001.2-2012.2 imply monetary policy dominant regime in Turkey.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.