The role of Turkish Central Bank within the financial crises: The analysis of the relation between the dolarization and the seigniorage, Turkish example 1986?2010

One of the main economic problem of the developing countries has been the Inflation. The value of the national money decreases because of the inflation and the people prefer to use foreign currencies which are much more stable. Dollarization is the substitution of the foreign currencies instead of the local money. Dollarization reduces the revenue of the seigniorage obtained by the governments. The dollarization and the seigniorage are analyzed in the study and their relation is proved according to the economic figures of Turkey thanks to the Granger Causality Analysis.