Abstract:

When studied empirical studies that investigate the relationship between monetary policy and growth, it is found that literature is broad, but in analyses, linear approaches are often preferred. These approaches describe the monetary-productive relationship, the conjunctive conditions of the economy without supervision. This study aims to investigate whether the effect of monetary policy on output in the periods of expansion and contagion of the economy is asymmetrical. For this purpose, the monetary-productive relationship was predicted by the Markov regime exchange model and the result was that the monetary policy’s effects in Turkey were asymmetric. Markov’s regime change model finds that the economy of Turkey has grown an average of 1.82 per cent in the growth regime, an average of 3 per cent in the reduction regime. 39 shows that it is reduced and that the rise in the exchange rate slows growth. Finally, economic evidence has been obtained that the Central Bank of the Republic of Turkey could have a real impact on the expansion regime but could not have a real impact on the fight against stagnation.

Keywords: