Work

Impact of Consumer Loans on Inflation and Current Account Deficit: A Toda Yamamoto Causality Test for Turkey

Year: 2016

Type: article

Abstract: This study aims to investigate the causality relationship between consumer loans and inflation, and consumer loans and current account deficit in Turkey. In this scope, Toda Yamamoto causality test is used for the periods between 1994:1 and 2015:3. According to test results, we found that there is no causal relationship between consumer loans and inflation rate, and consumer loans and current account deficit. In other words, changes in consumer loans do not lead neither high current account deficit rates nor high inflation rates in Turkey. Therefore, limiting consumer loans is not the solution for inflation and current account deficit problems of Turkey and policy makers should apply some other effective policies to solve high CA deficit and high inflation problems.

Source: World Journal of Applied Economics

DOI: 10.22440/wjae.2.2.1

Authors: Serhat Yüksel, Mustafa Özsarı

Institution: Konya Food and Agriculture University

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W2736128742

FWCI: 1.7

Cites: 29

Cited by: 13

Related to: 10