Money Multipliers’ Behavior in Developing Economies

26 Pages Posted: 20 Mar 2019

Date Written: August 31, 1977


In this work, behavior of money multipliers for a developing country, Turkey is examined and is calculated by estimating the values of the model constructed for the purpose for the period of 1952-1972. However, model lends itself for applications covering any other period.

Study includes three sections. First, basic money multipliers model is presented. Then, model is modified and developed considering Turkey’s special conditions. In the final section, the improved model is tested against actual data.

Interestingly, although tentative, the results are different from the limited number of studies about money multipliers in Turkey. Nevertheless, the necessity for a more detailed model to test actual data is imperative.

Keywords: Haluk F Gursel, Central Bank, Money Multiplier, Monetary Base, Monetary Control, Money Supply, Developing Countries Monetary Model, Monetary Model, Monetary Control Model, Monetary Control in Developing Countries

JEL Classification: E1, E5, E6, F3, F4, G1, G2, H5, H6

Suggested Citation

Gursel, Haluk Ferden, Money Multipliers’ Behavior in Developing Economies (August 31, 1977). Available at SSRN: or

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