The solutions of SMEs financing problems with SME financing policy of the European Union: Erzincan application

Monetary transaction mechanisms explains the effects of monetary policies that are implemented by central banks on real economy. Changes that occurs on monetary policy have effects on macroeconomics like proceeds and employment via transfer channels. Transfer channels can be examined in five basic titles. These are interest channel, loan channel, exchange rate channel, asset price channel and expectations channel. In our study ever channel is explained except for the expectations channel and reviewed empirically. Analysis of transfer channels, becomes a guide for policymakers, with the results obtained, on the point of producing systematical monetary policies. With this purpose, our study aims to see the outcome of monetary development on economical advances in Turkish economy. Using the quarterly data between 2006:1 and 2018:4, action and reaction analysis have been completed within the scope of VAR model and variance decomposition of variables have been finished. At the end of the study, we have come across the findings about the transfer channels' operation in the studied period in Turkey. Keywords: Monetary Transfer Mechanism, Monetary Transfer Channels, Vector Autoregression, VAR model Turkey