Abstract
In this study, we examine the money supply endogeneity in Turkish economy for the post crises period, between 2009.10 and 2016.12 by employing asymmetric causality test. Our results reveal that a p...
Highlights
Theory of money supply is a key subject in economics with a dynamic literature
Hicks (1937) based his analysis on General Theory: Money supply is treated as a quantity that is determined exogenously in the IS-LM analysis, and his view dominated the literature on money supply from neoclassical synthesis to monetarists
According to this mainstream view of money supply, central banks play a key role in the money supply process; the money supply is assumed to be exogenous
Summary
Theory of money supply is a key subject in economics with a dynamic literature. In his book A Treatise on Money (1930), Keynes points out that banks’ money is created via debt. Contrary to A Treatise on Money (1930) previous book, in General Theory (1936) Keynes focused on the situations in which monetary policy is not effective (i.e. liquidity trap) In this analysis, he defined the money supply as being directly determined by the actions of the monetary authority (Heron & Tarik, 2006). Hicks (1937) based his analysis on General Theory: Money supply is treated as a quantity that is determined exogenously in the IS-LM analysis, and his view dominated the literature on money supply from neoclassical synthesis to monetarists According to this mainstream view of money supply, central banks play a key role in the money supply process; the money supply is assumed to be exogenous. On the other hand, according to the postKeynesian view, the interactions between loan demand and bank lending practices determine
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
