Monetary business cysles theories, business cycle effects of monetary policies applied in Turkey economy

ABSTRACT One of the most important problems of modern economic is fluctuation in economic activities. These periods, which called business cycles, have effected several factors such as unemployment and many other macroeconomic activities in an economy. In this study the reasons and formation of business cycles will have been investigated. All approaches interested with economic problems have also taken up business cycles and built up various theories for solution. Each theory, which is built up to explain business cycles has reflected main lines of economic approaches. Therefore, theories has built up different solutions by different point of view. Although theories are more different than each other, every theory takes up some main factors. One of these factors is monetary factors. Although every business cycles theories take up monetary factors in to convideration, some approaches in business cycle theories take up money as a main source, they have built up the monetary problems. This study investigates theories that put forward business cycles result from monetary factors. Investigation takes up theories which economic approache they depend on. After monetary business cycle theory had been investigated, monetary factors, in other word business influence of monetary policies on Turkey economy have been dealt with. Investigation period is between 1980 and 1998. Because this period begins in 1980, it is a year that have got the structural transformation started in Turkey economy. Investigation has taken up interaction between business cycles and monetary policies and it has drawn a conclusion that various of money stock in Turkey has been influential on main macroeconomic variables.