- İstatistik Araştırma Dergisi
- Vol: 13 Issue: 1
- A Study on the Impact of Money Supply Growth and Government Debt Increase on the Economic Performanc...
A Study on the Impact of Money Supply Growth and Government Debt Increase on the Economic Performance in the Euro-Area
Authors : Esra N. Kilci
Pages : 61-72
View : 69 | Download : 56
Publication Date : 2023-07-26
Article Type : Research Article
Abstract :The severe economic and financial challenges of the COVID-19 pandemic have become increasingly noticeable since March 2020. The European Central Bank has attempted to intervene swiftly and effectively in response to these challenges and has carried out some facilities, including providing additional bank liquidity measures, promoting collateral easing initiatives, and large supplementary acquisitions of government and private sector assets. As a result, we witness an expansion in the balance sheet of the European Central Bank. The objective of this pa-per is to analyze the impact of money supply (M3) growth and government debt to GDP ratio on the real economy between 2000:Q1 and 2020:Q3. In the analysis, we employ Autoregressive Distributed Lag (ARDL) bounds test is developed by Pesaran et al. (2001). The findings from the ARDL bounds test support the evi-dence of the impact of money supply (M3) growth and government debt increase on inflation.Keywords : Ekonomik büyüme, COVID-19, Para arzı, Enflasyon