Abstract:

One of the macroeconomic indicators that all developed and developing countries are closely concerned and they study in detail is inflation. Inflation is seen as an important economic variable in terms of both affecting other economic variables and directly affecting the quality of life and well-being of citizens. In this regard, the high inflation rate arising from the global economy or the domestic economic situation is being followed by the Central Banks and attempted to be kept at certain levels with the necessary interventions. This can also be done through various economic instruments. The money is from these vehicles. In this study, the relationship between money supply and inflation rate in Turkey in the period 2008-2020 was analyzed by the Kantil-Kantil Regression (KKR) approach. The findings show that there is a heterogeneous relationship between money supply and inflation rate in Turkey, that is, that all values of inflation rate do not move in the same direction as all values of money supply. Therefore, it is understood that the increasing values of money supply will not always increase the inflation rate. Here, it can also be said that the periods in which the supply of money has a reverse relationship with the inflation rate, are thicker than the periods in which the same direction has a relationship.

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