Policy regime change and structural break in the velocity of money: The Turkish evidence

Cakan E., Ozmen E.

Applied Economics Letters, cilt.9, sa.11, ss.759-762, 2002 (SCI Expanded İndekslerine Giren Dergi) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 9 Konu: 11
  • Basım Tarihi: 2002
  • Doi Numarası: 10.1080/13504850210128794
  • Dergi Adı: Applied Economics Letters
  • Sayfa Sayıları: ss.759-762


The integration properties of Turkish velocity series are investigated by employing recently developed procedures (Zivot and Andrews (1992) and Perron (Journal of Econometrics, 80, 355-85, 1997)) which allows stationarity around an endogenously estimated structural break point under the alternative hypothesis. The evidence suggests that real currency balances and currency velocity are stationary around a broken trend. The estimated break point coincides with a major policy regime change in Turkey. Broad money velocity and real broad money balances are found to be nonstationary even after allowance for a broken mean and trend.