Türkiye ekonomisinde enflasyonun refah üzerindeki etkisi

Inflation is an obstacle in the decision-making processes of agents in an economy. In order to make better decisions under periods of inflation, agents need to spend extra effort, and this creates a loss in welfare. This study aims to measure thewelfare gain from disinflation in Turkey during the period 2001-2010. The methodology of Cagan (1956) has been used to estimate the relation between M1 money demand and inflation rate, and the welfare gain estimations are calculatedusing the methodology proposed in Bailey (1956). After the welfare gain calculation, this study examines the economic indicators from the banking and real sectors in Turkey and compares the findings to the observations from theeconomy. This study concludes that the indicators of welfare gain in Turkish economy are in the same direction as, yet weaker than, the result of the estimation.