Author(s): Necip DÃNDAR
Monetary policies of the Federal Reserve of the USA and the European Central Bank (ECB) have an impact on all global economies. However, the interest rates or interest decisions that these banks use as monetary policy instruments may have positive or negative effects especially on developing economies. The relationship between the interest rates used by the Fed and ECB as monetary policy and the growth rate of Turkey is investigated for the years 2000-2017 by applying VAR analysis. Cointegration test findings show that the federal fund rate, the ECB short-term interest rate and the growth variables move together in the long-term. According to Granger causality test findings, it is seen that there is only a one-way relationship from the federal fund rate and the ECB short-term interest rate to the growth rate. However, it was concluded that there was no causality from the federal fund rate to the short term interest rate of the ECB
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