MONETARY TRANSMISSION STRUCTURE IN TURKEY: 1994-2017 PERIOD

In this study the monetary transmission mechanisms of Turkey are analyzed for the period between 1994 and 2017. The variables employed are M3 Money Supply, Inflation Rate, Industrial Production, Nominal Exchange Rate, Interbank Short Run Interest Rate. A cointegration test has been applied in order to detect any long-run relationships between these variables. According to the Error Correction Model there are long-run relationships between these variables and all the variables except exchange rate have the signs which are consistent with the theory