Abstract:

With the spread of individual credit card use, it is possible to examine the recorded consumption, borrowing and saving behaviors of households and the reflections of the individual’s economic behaviors to the economy. In this study, the relationship between individual credit card use with money supply and economic indicators were investigated in Turkey. For this purpose, the data set of the real volume of individual credit card transaction and the real money supply, industrial production index, consumer price index-D and interbank overnight interest rate and USD exchange rate were used, for the monthly period over 2005M1-2019M8. According to the Granger causality analysis results, we found that the unidirectional causality relationship from industrial production index, consumer price index, interest rate, money supply and exchange rate to credit card use. In summary, analysis results indicate that individual credit card use is affected by economic indicators and money supply.

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