Relationship between inflation and economic growth (2003-2011): The case of Turkey

Turkey's economy from the 1970s sought a solution that has become one of the biggest problems the concept of inflation, the impact of political turmoil has led to important difficulties in the economy. Both the planned system based on import-substitution policies, and foreign trade is brought up to the free decisions of January 24 has not realized a positive impact on inflation. At the end of this process, frequently experienced from the 1990s, due to high inflation rates and low growth rates the formation of the economic crisis, "relationship between inflation and economic growth" has started to create the axis of the economic debate. Started to be implemented from the date of April 14, 2001 "Transition to Strong Economy Program" after the actual, lower inflation rates and high growth rates if there is a relationship between these two concepts, that way if you know what relationship if any of this relationship in terms of "relationship between inflation and economic growth "accentuated the need to increase the subject of investigation. Relationship between inflation and economic growth in Turkey in this study, the period 2003:1-2011:2 quarterly data were examined by using time series analysis. Granger causality method and regression analysis was used in this study. According to the results of Granger causality analysis of growth in inflation was observed in one-way causal relationship. According to the results of regression analysis of the economic growth has positive impact on inflation.