THE RELATIONSHIP BETWEEN PRICE AND FINANCIAL STABILITY IN MONETARY POLICY DESIGNS: EVIDENCE FROM THE EURO AREA (1999:01-2020:12)
JOURNAL OF MEHMET AKIF ERSOY UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY, cilt.9, sa.1, ss.262-293, 2022 (ESCI, TRDizin)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 9 Sayı: 1
- Basım Tarihi: 2022
- Doi Numarası: 10.30798/makuiibf.862481
- Dergi Adı: JOURNAL OF MEHMET AKIF ERSOY UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY
- Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
- Sayfa Sayıları: ss.262-293
- Anahtar Kelimeler: Monetary Policy Designs, New Environment Hypothesis, The Euro Area, TVP-VAR, BANKING CRISES, UNIT-ROOT, DETERMINANTS
- Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
- Atatürk Üniversitesi Adresli: Evet
Özet
In this study, it is aimed to examine the relations between price stability and financial stability in the monetary policy designs of the euro area countries empirically, taking into account the development of monetary policy designs since the 1990s with Conventional Wisdom and New Environment Hypotheses. For this purpose, in the study are examined the time-changing relations between price stability and financial stability in euro area countries where monetary policies are designed for the main purpose of price stability econometrically using the TVP-VAR model for the period 1999:01-2020:12. As a result of the study, it was found that the relations between price stability and financial stability during the review period in euro area countries changed over time and were mutual within the scope of the New Environment Hypothesis. These results point to the necessity of redesigning monetary policies in the euro area countries, taking into account the New Environment Hypothesis and the changing structure of the relations between monetary and financial variables over time.