PRISONER DILEMMA BETWEEN POLICY MAKERS: EVIDENCE FROM TURKEY

Authors

  • Metin Tetik Uşak University, School of Applied Science, Turkey
  • Reşat Ceylan Pamukkale University, Department of Economics, Turkey

DOI:

https://doi.org/10.5937/bizinfol702001T

Keywords:

Monetary Policy, Fiscal Policy, Prisoners' Dilemma

Abstract

In this study, we present about the interaction between monetary and fiscal policy makers in the Turkish economy since the 2001 crisis. This interaction is evaluated by a theoretical perspective of the game. The data show that there is a conflict between the monetary and fiscal policy makers in the Turkish economy, especially in some periods. The coordination problem created by this conflict is affecting social welfare negatively. Therefore, we argue that during these periods, there is a state of "Prisoners' Dilemma" among policy makers.

Downloads

Download data is not yet available.

References

Alp, H., Gürkaynak, R., Kara, H., Keleş, G., & Orak, M. 2010. Türkiye’de piyasa göstergelerinden para politikası beklentilerinin ölçülmesi. İktisat İşletme ve Finans, 25(295), 21-45.

Bakış, O. 2015. Türkiye İşgücü Piyasasında Güncel Eğilimler. İktisat İşletme ve Finans, 30(351), 73-110.

Bari, B. 2013. Yeni Keynesyen Modelde Optimum Para Politikası: Türkiye İçin Dinamik Stokastik Genel Denge Modeli Tahmini. Yayınlanmamış Doktora Tezi, Anadolu Üniversitesi Sosyal Bilimler Enstitüsü, Eskişehir.

Blinder, A. S. 1982. Issues in the coordination of monetary and fiscal policy. Kansas City: Federal Reserve Bank of Kansas City.

Davig, T., & Gurkaynak, R. S. 2015. Is optimal monetary policy always optimal? Research Working Pepers. Kansas City: Federal Reserve Bank of Kansas City.

Gürkaynak, R. S., Kantur, Z., Taş, M. A., & Yıldırım, S. 2015. Monetary policy in Turkey after Central Bank independence.

Nordhaus, W. D., Schultze, C. L., & Fischer, S. 1994. Policy games: coordination and independence in monetary and fiscal policies. Brookings Papers on Economic Activity, 1994(2), 139-216.

Telatar, Erdinç, Funda Erdoğan. 1997. Para Politikası Oyununda İnandırıcılık, Ankara: Hacettepe Üniv. İ.İ.B.F. Yayınları, No:25.

EVDS, 2017. Eletronic Data Delivery System. [online] Available at: <https://evds2.tcmb.gov.tr/> [Accessed 10.12.2017.]

Ministry of Development Republic of Turkey, 2017. Main Economic Indicators. [online] Available at: <http://www.mod.gov.tr/Pages/MainEconomicIndicators.aspx> [Accessed 11.12.2017.]

Republic of Turkey Prime Ministry Undersecretariat of Treasury, 2017. Statistics. [online] Available at: <https://www.treasury.gov.tr/public-finance-statistics> [Accessed 11.12.2017.]

Turkish Lira Reference Interest Rate, 2017. Rate and Statistics. [online] Available at: <http://www.trlibor.org/english/veriler.aspx> [Accessed 11.12.2017.]

Turkish Statistical Institute, 2017. Main Statistics [online] Available at: <http://www.turkstat.gov.tr/> [Accessed 10.12.2017.]

Downloads

Published

2017-12-29

How to Cite

Tetik, M., & Ceylan, R. (2017). PRISONER DILEMMA BETWEEN POLICY MAKERS: EVIDENCE FROM TURKEY. BizInfo (Blace) Journal of Economics, Management and Informatics, 8(2), 1–13. https://doi.org/10.5937/bizinfol702001T