ABSTRACT
This research investigates the causal links between money supply growth and inflation in Turkey. Unlike previous literature, In the investigation of causality, time-varying causality tests were applied. The results indicate that there is causality from money supply growth to inflation. However, it emphasizes that when time-varying causality is considered, causality is not homogeneous throughout the sample, but heterogeneous, more sensitive to structural breaks.
Disclosure statement
No potential conflict of interest was reported by the authors.