Parasal Aktarım Mekanizması: Firma Bilanço Kanalı ve Türkiye

Abstract

According to the firm balance-sheet channel of monetary transmission mechanism, since external finance is costly than internal finance, financially constrained firms chose internal finance. Monetary and fiscal authorities should consider the existence of the firm balance-sheet channel, when they design policies if it operates. A rise in real interest rates causes a rise in firm’s debt, fall in net worth and as a result of these changes, a rise in the marginal cost of external financing occurs. Consequently firms’ ability for investing and job creation decreases. In an economy in which investment is positively related with cash flow, an increase in firm’s cash flow results with an inrease in firm’s investment. In this paper we examined the effect of real interest rate, real exchange rate, cash flow and sales on the investment behaviour of the firm. The panel data analysis, performed by using Central Bank of Turkey’s firm balance sheet database, shows that the firm balance-sheet channel operates in Turkey.