This paper aims to investigate the interaction between monetary and fiscal policies in Turkey. For this purpose, a Bayesian Structural Vector Auto-Regression (SVAR) model with sign and zero restrictions is used. We particularly focus on how the fiscal and monetary policy variables respond to various macroeconomic shocks and whether the type of shocks matters. Our results confirm the importance of nature of shocks in terms of interaction between monetary and fiscal policies with the finding that both policy shocks are complementary in response to demand and supply shocks while they are substitute in response to shocks caused by the each other. Our main findings are robust to alternative variable definitions and identifying restrictions.

中文翻译：

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土耳其货币和财政政策的相互作用

本文旨在研究土耳其货币政策和财政政策之间的相互作用。为此，使用具有符号和零限制的贝叶斯结构向量自回归 (SVAR) 模型。我们特别关注财政和货币政策变量如何应对各种宏观经济冲击以及冲击的类型是否重要。我们的研究结果证实了冲击性质在货币政策和财政政策之间的相互作用方面的重要性，并发现这两种政策冲击在应对需求和供应冲击时是互补的，而在应对彼此造成的冲击时则是替代性的。我们的主要发现对于替代变量定义和识别限制是可靠的。