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Journals / Bankacılar / 2018 / Cilt: 29 - Sayı: 105

The Effect of Monetary and Fiscal Policies on Inflation: A Bootstrap Panel Granger Causality Analysis for BRIC Countries and Turkey

Para ve Maliye Politikalarının Enflasyon Üzerindeki Etkisi: BRIC Ülkeleri ve Türkiye İçin Bir Bootstrap Panel Granger Nedensellik Analizi

MEHMET BÖLÜKBAŞ
Pages
47–62
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

On the other hand, a unidirectional causality relationship has been found from fiscal policy to inflation in India and whereas there is a unidirectional causality relationship from inflation to fiscal policy in Brazil.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study focused on the effects of monetary and fiscal policy on inflation and the relationship between variables has been examined for the BRIC (Brazil, Russia, India, China) countries and Turkey.
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Key Findings & Data:In the study, Bootstrap Panel Granger Causality Analysis (The Second Generation Panel Causality Test) method which is developed by Kónya (2006) was used.
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Conclusion & Impact:On the other hand, a unidirectional causality relationship has been found from fiscal policy to inflation in India and whereas there is a unidirectional causality relationship from inflation to fiscal policy in Brazil.
🔬Design:Research Article
📍Scope:2006 Verileri
⚙️Variables:Domain Parameters

Abstract

This study focused on the effects of monetary and fiscal policy on inflation and the relationship between variables has been examined for the BRIC (Brazil, Russia, India, China) countries and Turkey. In the study, Bootstrap Panel Granger Causality Analysis (The Second Generation Panel Causality Test) method which is developed by Kónya (2006) was used. Firstly the cross-sectional dependeny was investigated among variables, then slope homogeneity test was done. According to the findings of the study, a unidirectional causality relationship has been found from monetary policy to inflation in India and Turkey and there is a bidirectional causality relationship between monetary policy and inflation in China. On the other hand, a unidirectional causality relationship has been found from fiscal policy to inflation in India and whereas there is a unidirectional causality relationship from inflation to fiscal policy in Brazil.

Özet

Bu çalışmada para ve maliye politikalarının enflasyon üzerine etkisine odaklanılmış ve değişkenler arasındaki ilişki BRIC (Brezilya, Rusya, Hindistan, Çin) ülkeleri ve Türkiye için araştırılmıştır. Çalışmada yöntem olarak ikinci nesil panel nedensellik testi olan ve Kónya (2006) tarafından geliştirilen Bootstrap Panel Granger nedensellik analizi kullanılmıştır. Çalışmada ilk olarak değişkenler arasında yatay kesit bağımlılığı olup olmadığı araştırılmış ardından homojenlik testine yer verilmiştir. Çalışmanın ampirik bulgularına göre, Hindistan ve Türkiye’de para politikasından enflasyona doğru tek yönlü bir nedensellik ilişkisi mevcut iken, Çin’de para politikası ve enflasyon arasında çift yönlü bir nedensellik ortaya çıkmıştır. Diğer yandan Hindistan’da maliye politikasından enflasyona doğru tek yönlü bir nedensellik ilişkisi, Brezilya’da ise enflasyondan maliye politikasına doğru tek yönlü bir nedensellik ilişkisi gözlenmiştir.

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Cite This Article

BÖLÜKBAŞ, M. (2018). The Effect of Monetary and Fiscal Policies on Inflation: A Bootstrap Panel Granger Causality Analysis for BRIC Countries and Turkey. Bankacılar, Cilt: 29 - Sayı: 105, 47–62. https://ajindex.com/articles/144492

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