Abstract :
Although monetary policy shifts from traditional policies to non-traditional policies, the policy effect is basically created through interest and monetary expansion channels. There is a wide area of discussion in the literature, in which inflation is also taken into account, on the effect on growth through interest and monetary expansion. In this study, while discussing the expansionary monetary policies and growth efficiency applied in the periods when the economies are shrinking, the reflection of the policies on the growth will be examined with an analysis consisting of a wide set of countries. To measure the growth effectiveness of monetary policy in contracting periods, the 2007-2016 period was examined with the data set of 110 countries. With the System GMM method, 4 basic growth variables and 4 monetary policy variables were taken into account. To measure the policies of the contraction period, the period 2007-2009, which is common for all countries, was examined. As a result of the analysis, it was revealed that the inflation-growth trade-off was less in all countries, and interest and investment policies supported growth. It is observed that monetary aggregates do not have a significant effect.
Keyword :
Expansionary Monetary Policy, Growth. (Jel Codes: E5, E52, O4).