An Empirical Investigation Upon Money Multipliers and Their Stability in Turkish Economy for the Post – 1990 Period

In this paper, we investigate whether the money multiplier process has a stable or forecastable characteristics in Turkish economy. Our estimation results point out that the processes leading to the money supply definitions over the base money indicates an unstable characteristics also decreasing the effectiveness of monetary policies applied by monetary authority. Besides, the sub-components of money multipliers give no support to a stable money multiplier process, thus do not support the Monetarist explanations in conduct of the monetary policy.