Abstract:

The most important field of work in economic science is to bring the level of prosperity of nations to the highest level. Adam Smith's book "The Wealth of Nations" is one of the first works in the field of contemporary economy. The governors of the economy use the means of monetary and financial policy to ensure the prosperity of nations, economic growth and development. The process passing from the implementation of monetary policies to the final goal is known as monetary transfer mechanisms. Money transfer mechanisms are classified as traditional interest rates, asset prices, exchange rates, expectations and credit channels. Bernanke and Gertler have compared the work of the monetary transfer mechanism to the black box. The understanding and development of the credit channel from the monetary transfer mechanisms is very important for developing countries, such as Turkey, where capital is not spread to the base and with that need funding with external resources. The aim of the study is to determine the activity of the credit channel in Turkey on the annual basis with the 2004C1-2020.C1 quarter data. From here, the VAR model, defined as the equalization for long-term relationships, the error correction model for short-term relationships, and the variance division and impact-up analysis, and in the final stage, the causality analysis has been applied. According to the findings of the study, the variables of the monetary transfer mechanism and growth have determined significant relationships both long-term and short-term statistically. The credit channel has been identified as an impact on economic growth and the existence of GDP variable taken as a dependent variable as well as other independent variables as well as the existence of double-directional causality. The result of the study is that the credit channel from the monetary transfer mechanisms is active in Turkey.

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