Fiscal and monetary policy effectiveness in turkey: A comparative analysis


No Thumbnail Available
Type
Article
Change log
Authors
Şen, H 
Kaya, A 
Abstract

jats:pRelying on the Autoregressive Distributed Lag cointegration technique, this paper assesses the comparative effectiveness of the fiscal and monetary policy on output growth in Turkey for the period 2003:q1-2019:q1. The empirical evidence shows that both policies are effective in promoting output growth but with varying degrees, revealing that the impact of monetary policy on output growth is greater than that of fiscal policy. Overall, based on our empirical evidence, it can be suggested that the Turkish authorities should set sight on monetary policy to achieve higher output growth while seeking ways to improve the output growth-enhancing role of fiscal policy. To that end, among many others, budgetary flexibility can be increased through creating fiscal space and growthfriendly tax and spending reforms can be undertaken without jeopardizing the trade-off between growth and equity while giving priority to proper coordination of fiscal policy with monetary policy.</jats:p>

Description
Keywords
Fiscal and monetary policy coordination, Macroeconomic policy, Macroeconomic policy management, Turkey
Journal Title
Panoeconomicus
Conference Name
Journal ISSN
1452-595X
2217-2386
Volume Title
68
Publisher
National Library of Serbia
Rights
All rights reserved