Three essays on monetary policy

This thesis consists of three separate essays on the effects of monetary policy. The aim of the first part is to investigate through which channels the monetary policy implementations are transferred to the main real sectors of the economy in Turkey and in what way and to what extent the real sectors are affected when a monetary policy shock occurs in the economy. In this direction, considering the period 2011: 01-2019: 12, the effect of the monetary transmission mechanism's expectation, interest, credit and exchange rate channel on the industry, service and construction sectors was analyzed with the Vector Autoregressive (VAR) method and it was determined that the effect of the monetary transmission mechanism channels differs according to the sectors. The purpose of the second part is to investigate the effect of monetary policy on the unemployment rate. Based on this purpose, the effect of monetary policy on unemployment rates was examined through unemployment rates for different age groups. The findings of this study, based on the period 2009:Q1-2020:Q4 and using the VAR method, show that the effect of monetary policy on unemployment decreases as age increases and does not affect the over 65 age group at all. In the third part, the effect of the interaction of monetary and fiscal policy on income distribution is examined by using the Arrelano-Bond Difference GMM estimator for 27 developing and 33 developed country groups. The findings of the analysis based on the period of 2010-2021 show that contractionary monetary policy has a distorting effect on income distribution, contractionary fiscal policy has a positive effect on income distribution, and both policy interactions have a positive effect on the income distribution, while in developed country groups only monetary policy is effective and increases income inequality, and fiscal policy and the interaction of two policies do not have a significant effect on income distribution.