Investigation of Interaction Between Monetary and Fiscal Policy in Turkey: SVAR Approach

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Metin Tetik Resat Ceylan


Interaction between monetary and fiscal policies plays an important role in ensuring macroeconomic stability. This study aims to examine the interaction between monetary and fiscal policy with key data on macroeconomic variables in Turkey. The interaction between the policies has been analyzed by Structural VAR (SVAR) technique, which is also widely used in the literature. The analysis is based on the impact-response functions obtained by the SVAR technique. In this way, dynamic interactions of policy variables used for monetary and fiscal policies can be identified. In the study, the contemporaneous effects of macroeconomic key variables such as output and inflation were examined. The existence of a strategic interaction between monetary and fiscal policies has been discussed as a result of the findings.

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TETIK, Metin; CEYLAN, Resat. Investigation of Interaction Between Monetary and Fiscal Policy in Turkey: SVAR Approach. Journal of Multidisciplinary Developments, [S.l.], v. 1, n. 1, p. 113-121, dec. 2016. ISSN 2564-6095. Available at: <>. Date accessed: 22 sep. 2021.
Social Sciences - Regular Research Paper


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