Abstract:

Although the discussion of the intrinsicity of the money supply is a topic based on the ancient, it is considered as a theory based on Post Keynesian economists. Post Keynesian economists argue that in an economy there is a causal relationship between credit and money supply and the monetary base. In this study, the internality of the money supply for the Turkish economy is investigated using monthly data for the period 2006-2018. The method of analysis is the Toda-Yamamoto causality procedure and the Bootstrap Toda-Yamamoto causality analysis procedure. The empirical findings show that there is a causal relationship from the loan to the money supply, the monetary base and the money cracker. There is also a reasonable relationship between the money supply and the loan. In this case, the bilateral causality relationship between the credit and the money-toucher supports the likvidity preference view on the intrinsicity of the money supply.

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