Özet:

The relationship between economic growth and inflation is one of the most debated issues in analysis. In recent years, there has been a strong shift in the preferred view of a positive relationship between growth and inflation. The post-1980 study reveals that the relationship between economic growth and inflation is negative. Turkey is experiencing a stable growth problem. The inability to achieve price stability is also one of the important problems faced by Turkey in the long run, and due to the inability to control inflation, there is instability in the economy. This research examines the relationship between growth and inflation in Turkey from 1990 to 2021. The levels of the series were determined by ADF and PP unit root tests. The fact that the series is not stationary at the second difference indicates the existence of the necessary condition for cointegration analysis. In addition, the LeeStrazich test results show that the growth variable is subject to structural breaks. According to the results of the cointegration test, there is a symmetrical relationship between the series in the long run and an asymmetric relationship in the short run. The results show that the negative component of inflation is stronger than the positive component in the short run. The Granger test provides some evidence showing the existence of a oneway causality relationship from growth to inflation in Turkey. This result is significant in that it shows that the policies implemented to increase economic growth are effective in increasing inflation. In recent years, the deterioration of price stability of macroeconomic policies implemented to increase economic growth causes various negativities when evaluated in terms of both employment and sustainable development. The results indicate that focusing on price stability is necessary for stable economic growth and development in terms of ensuring macroeconomic stability and the future of the country.

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