Özet:

This study aims to identify the impact of inflation and unemployment on the economy of Turkey. In the 1988 and 2019 studies, the Johansen Integration Test was first conducted to determine whether there is co-integration between the variables. Johansen found that there was a co-integration equation between the integration test and the series. After the determination of this relationship, the direction of the relationship between the variables was determined by the Granger Cause Test and it was observed that the one-way Granger Cause between inflation-GDP and inflation-unemployment. Finally, calculating the long-term rates with the FMOLS, CCR and DOLS methods, the short-term rates with the error correction model, the unemployment and inflation have been found to reduce the GDP in the long and short term. The results of the test show that inflation causes unemployment and that both variables have a reducing effect on GDP. Increased inflation and unemployment are the cause of stagnation and decline in the country’s economies. In order to avoid this negative result, policy makers need to take steps to reduce inflation. In particular, production should be increased, new employment opportunities should be provided and monetary policies should be developed in accordance with the structure of the market.

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