Abstract:

Monetary policy is the name given to the whole of the policies implemented by the Central Banks to ensure the stability of the money circulating in the market by using a number of tools and by influencing the amount of money in the market. It is important to determine which channels are affected by which macroeconomic variables in order for the monetary policy to maintain its function and increase its effectiveness. In this context, the monetary transmission mechanism is discussed with its different dimensions, especially after the global financial crisis, with the inclusion of unconventional monetary policies in the literature. In the study, the monetary contribution mechanism between January 2011 and August 2022 was analyzed by SVAR analysis, in this context, 9 different variables were used and M2 money supply and weighted average fund cost were used to examine the effect of monetary policy. In this context, it has been determined that the money supply does not produce meaningful results for the efficiency of the monetary transmission mechanism, and the weighted average funding cost is effective from all channels. However, it is possible to say that the effect of the interest rate on inflation loses its effectiveness due to the deterioration of expectations in the short term.

Keywords: