A research article co-authored by our department’s Research Assistant Hasret Yağmur Aydın has been published.
The study, titled “The Endogeneity of Money Supply in Developing Economies,” challenges the conventional view that money supply in developing countries is exogenously controlled by central banks and demonstrates that it is largely determined by bank lending. The study suggests that monetary policy should focus on credit conditions and financial structures rather than targeting monetary aggregates.
