Abstract:

In the implementation of economic policies in modern economies and the achievement of the aimed objectives, after the 1960s, the amount of money supply began to be widely used. As the use of monetary theory practices became widespread, the way of central banks interfere with the supply of money directed their own balance sheets and financial institutions’ balance sheets to indirect monetary policy practices that immediately influenced their own balance sheets. In this study between 2007 and 2012 the effect of monetary policies in Turkey on the balance of payments and external debt and the level of significance of these effects were attempted to be identified within the framework of the TCMB Analysis Balance; Treasury and TCMB relations included in the accounting of external debt. The accounting records of the Treasury Council, which operates as a financial agent within the Ministry of Finance on behalf of the government and the public bodies specified by law, are exemplified in accordance with the "General Management Accounting Regulations" issued on the basis of "General Financial Management and Control Act" No. 5018 and entered into force in 2006. The first part of the study included the basic concepts and relationships related to money; the second part discussed the monetary policies, the objectives and tools of monetary policies; and the third part discussed the issues of payment balance, external debt and external debt accounting by the Ministry of Finance. In the fourth part of the study, the balance of payments and the effects of monetary policies applied during the data period on external debt were analyzed using the three-month balance of payments and external debt data obtained from TCMB databases. In the analysis, the currency, reserve currency, currency base, central bank currency, M1 and M2 monetary sizes were taken as independent variables and the effects on dependent variables, each subjected to linear regression using the SPSS package program, were analyzed.

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