Dissallik ve Nedensellik Kavramlari Üzerine Kisa Bir Bakis/A Short Overview on the Concepts of Externality and Casuality

The aim of this study is to cover the notions of externality and causality, which come up in many applied studies. With this aim, the relationship between externality and causality in literature are analyzed conceptually first, and then an empirical analysis is made for Turkey. In the analysis, the relationship between money supply (m2), inflation rate (enf) and interest rate (r) variables is first determined by Granger Causality Test, and then analyzed by Causality Test suggested by Engle and also by Externality Wald Test. According to the results of the analysis, there is endogenity relationship between money supply and inflation. Additionally, since interest rate affects money supply super exogenously, it is possible to influence money supply with efficient interest rate policies. [PUBLICATION ABSTRACT]