Akademik Veri Yönetim Sistemi
JOURNAL OF MEHMET AKIF ERSOY UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY, cilt.9, sa.1, ss.262-293, 2022 (ESCI)
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.