This paper aims to investigate the interaction between monetary and fiscal policies in Turkey. For this purpose, a Bayesian Structural Vector Autoregression (SVAR) model with sign and zero restrictions is used. We particularly focus on how the fiscal and monetary policy variables respond to...

This paper aims to investigate the interaction between monetary and fiscal policies in Turkey. For this purpose, a Bayesian Structural Vector Autoregression (SVAR) model with sign and zero restrictions is used. We particularly focus on how the fiscal and monetary policy variables respond to...

This paper examines the dynamic effects of fiscal policy shocks on the Turkish economy using a three-variable structural vector autoregressive (SVAR) model for the period 1987:q1 – 2005:q4. The first differences of the variables are used, but the long-run relationship between the levels of the...