An empirical analysis of the monetary transmission in theTurkish economy

Download

140303.pdf

Date

2002

Author

Çavuşoğlu, A. Tarkan

Metadata

Show full item record

Item Usage Stats

154
views

0
downloads

The purpose of this two-essay thesis is to empirically investigate the characteristics of the monetary transmission mechanism in the Turkish economy. The first essay is an attempt to test the presence of a bank lending channel of monetary transmission by exploiting a dynamic panel data modelling approach. The empirical investigations are focused on the bank lending behaviour of 58 deposit money banks covering the period of 1988-1999. The results of the model estimations provide no evidence of a potential for a bank lending channel to exist in the Turkish economy. Such an outcome is reflected by the lack of a significant relationship between monetary policy indicators and the growth rate of the loan msupply in the estimated models. However, the findings imply that bank lending behaviour is influenced significantly by bank specific factors such as the balance sheet strength and the quality of the asset portfolio, and by government debt sales to the banking system. The second essay of the thesis is an attempt to trace the adjustment dynamics of the monetary transmission process by using the cointegration analysis of time series. The quarterly macroeconomic data exploited in the empirical investigations cover the period of 1985:1-2001:4. The findings imply that the monetary transmission process in the Turkish economy can be characterised by the monetary accommodation of high inflation and budget deficits, the outcome of which is an endogenous credit money expansion.

Subject Keywords

Monetary transmission, Bank lending channel, Endogenous money, Dynamic panel data, Cointegration

URI

https://hdl.handle.net/11511/13473

Collections

Graduate School of Social Sciences, Thesis

Suggestions

OpenMETU
Core

An Empirical Analysis of the Bank Lending Channel in Turkey Ozsuca, Ekin Ayse; Akbostancı Özkazanç, Elif (2013-07-01) The purpose of this paper is to empirically analyze the role of the banking sector in monetary policy transmission in Turkey covering the period 1988-2009. By exploiting dynamic panel data modeling approaches, the heterogeneity in banks' lending response to changes in policy interest rates is analyzed. Given the changes in the policy stance and developments in the financial system following the 2000-01 crisis, the analysis is further conducted for the two sub-periods, 1988-2001 and 2002-2009, to examine whe...
An Empirical Analysis of the Risk-Taking Channel of Monetary Policy in Turkey Ozsuca, Ekin Ayse; Akbostancı Özkazanç, Elif (2016-03-01) This article investigates the bank-specific characteristics of risk-taking behavior of the Turkish banking sector as well as the existence of risk-taking channel of monetary policy in Turkey. Using bank-level quarterly data over the period 2002-2012 a dynamic panel model is estimated. We find evidence that low short-term interest rates reduce the risk of outstanding loans; however short-term interest rates below a theoretical benchmark increase risk-taking of banks. This result holds for macroeconomic contr...
Banks and monetary policy transmissiom mechanism : an empirical analysis for Turkey Özşuca, Ekin Ayşe; Akbostancı Özkazanç, Elif; Department of Economics (2012) The purpose of this thesis is to empirically explore the characteristics of the monetary transmission mechanism, with a particular emphasis on the role of banks, in Turkey. By looking at the banking sector at the micro level and exploiting dynamic panel data modeling approaches, the heterogeneity in banks’ response in terms of their lending and risk-taking to changes in policy interest rates is analyzed. The first essay is an empirical analysis of the bank lending channel of monetary transmission. In this r...
The Assessment of macroeconomic variability and monetary transmission mechanisms in Turkey with VAR esrimates Baştan, Emine Meltem; Gaygısız Lajunen, Esma; Department of Economics (2012) This thesis investigates the nature of macroeconomic changes by focussing on the monetary policy changes in Turkey between 1990Q1-2011Q4 and assesses the variability of the economy via impulse response functions obtained from VAR analyses. The period of the analyses is characterized with changes of the definitions of monetary aggregates in 2002 and 2007. In order to have consistent monetary series, the new and old series are constructed according to new and old definitions and then analyses are carried out ...
Trade-based manipulation in financial markets İmişiker, Serkan; Gaygısız Lajunen, Esma; Department of Economics (2013) The purpose of this thesis is to empirically explore the characteristics of the monetary transmission mechanism, with a particular emphasis on the role of banks, in Turkey. By looking at the banking sector at the micro level and exploiting dynamic panel data modeling approaches, the heterogeneity in banks’ response in terms of their lending and risk-taking to changes in policy interest rates is analyzed. The first essay is an empirical analysis of the bank lending channel of monetary transmission. In this r...

Citation Formats

A. T. Çavuşoğlu, “An empirical analysis of the monetary transmission in theTurkish economy ,” Ph.D. - Doctoral Program, Middle East Technical University, 2002.