Para ve para arzının kontrolü

Abstract

This system is established either independently or under state control. The banks in the system are classified as big banks or small banks according to their branch numbers. Therefore their services are also parallel to their types. Banks are companies established to give profit to their slaveholders. Among the services that the banks give especially credit service is very important for individuals and country's economy. As a matter of fact banks accept deposits of house holds and distribute this money to many places in many ways. The goverments has taken under control all banking activities in order to protect the investors toward unqualified management. These inventions of goverment are in conservative and indicative ways. The (money in) deposits of commercial banks are also accepted as money supply together with the banknotes emitted by the Central Bank and coins emitted by the treasury. The Central Bank manage the money supply according to the needs of the economy. This is not an easy job. On one hand, the central bank should lead a production increasing money and credit policy and on the other hand should prevent inflation without creating stagflation in the economy. Therefor in most of the countries, the monetary policy managment is collected in one hand and the Central Bank is in charge of this managment. Although in most of the counties the money supply management is in the hands of the central bank. The central bank can not lead a different strategy from the general economic policy of the goverment. When the goverment and the central bank come across a disagreement, usually the govermenf s requairments are taken into account for a solution. All deposit types are considered to be money, since they suffice all the functions of money. There for, they are called deposit money The differences and similarities of deposit money and real money are explained in detail the fifth chapter. The deposit money is formed by reserve requirements, the return of credit to the bank in the form of deposit ad credit demand of money in the market. How these forms of money operate is studied in detail, with examples in the fourth chapter. Today money issuing is done by central banks by obeying certain rules. Apart from this Central Banks has the authory to identify the rediscount rates, to make open markets operations, to define credit limits and reserve rations. Central Banks can effect the deposit and credit amount of commercial banks and the distribution of credits to different sectors of economy. We could see the activities and functions of central banks and their effect to the economies in the sixth chapter.

SUMMARY Brifly the aim of this research is; to obseve the main funtions and specifications of money, how it is directed in the fund markets.the roll of bank in money supply and how the central bank controlls the money supply. These observation are used to examine Turkey's situation in between the years 1987- 1995. When people started living in society, their needs developed and varied. in order to supply these needs; professionism and labour dision in the society developed. After meeting their own needs, individuals started tradings the excess goods they produced with each other. Gradually, realising the difficulty of this barter system, `Money` the exchange device that is agreed up on by everybody came into view. Its possible to take back the creation of money to very early years. Hovvever it is within the near past that the money supply is entitled to certain rules. The primary moneys systems were built upon precious metals. Later on, paper money called `Banknotes` started circulation and eventually the latest money systems was approached. Money`s being easy to identify; if s divisibilitiy and if s keeping if s value are the other specifications of money. VVhen changing from coins to banknotes and from banknotes to coins, money dosen't lose from if s value. Besides with the help of (fligren) pictures and metallic strings on the surface of the money.the above mentioned specifications are obtained. Money does not only involve the cash in our puckets. The banknotes and coins in circulation are called cash money. Besides this cash money,there are bank deposits that serve the same purpose with cash money, which are called deposit money. Other than these two viidefinitions, other deposits and securities, although not being as liquid as cash money, also serve the purpose of money. These are called near money. Money's keeping ifs value and effects an economic efficincy are explained and in the second part. in the first part the specialities and definitions of money are explained,and in the second part,The Classical and Keynesian Theories of money are explained. in order to be a measure of value, it has to have consisttancy for it's value, fırst of ali. However the value of money changes vvithin time, because of various couses. The value of money is measured by the amount of goods and sevices unit money can purchase, wich is called` The Purchasing Power of Money`. The Classical economists that tried to explain the value of money, used the quantitiy theory to explain it. There are two aspects in the quantity theory : The first is explained by the exchange rate of money in the market. If the amaunt of money supply in the market is less than the total needs of public, in order to meet ali these needs of people, the exchange rate of money should be high. The second aspect is related wiht how much of the total money supply is held in the hands of the publicThis aspect explains the quantity theory by explaining how the increase in money supply increases the total price level. The Classical economists started with the idea that money is needed for transactions and reserves; where else,the Keynesian economist added a third reason for money demand which is speculation. The quantity theory in the classical system used to study the money demand as a function of income. The money demand due to speculation in the Keynesian system is studied as a function of interest rates.. in monetary economies it is seen that this change is more observable. Individuals can supply their present and future needs by means on money. Good can always be converted into money and this money obtained can be used to buy goods and services in the future. Another opportunity of using money as a means of exchange, is its conviniency of carrying. Besides, it is much more easier for individuals to keep their savings in the form of money. Money plays the value predicting roll for goods. viüMoney is designed in the form of coins and non-copyable, carriable banknotes every where vvithin the country it is used. The effect of money on economic activities and it is keeping if s value is explained detail in chapter öne. in Keynesian Economy, the money is demanded for transactions-reserves and speculation; vvhich is the purpose of the liquidity preferance theory. in this system the equilibrium real income can be effected by the monetory basis of the economy, because the rate of interest vvhich is an important criteria for investment decisions. İf enterpreneurs is determined by the money supply and demand when the psychological money supply and rate of interest is overcome, the market goes through a liquidity-trop vvhich is explained detail in chapter three. Fund suppliers and fund demanders meet at the capital and money markets. These two markets differ from each other on time basis, but they serve the same purpose, using the same monetary tools. The fund demanders can reach the amount of fund they require from the 13* and the 2nd markets. VVhile financial mediators transfer the funds from the ovvners of saving to the fund demanders, they also contribute to the economic grovvth. For the ovvners of the savings, it is a good opprtunity to leam vvhich financial tools will bring them the best revenue, from the financial mediators. The financial institutions holding a big deal of fund in their hands, are capable of spreading the risk to various monetary tools. The maturity period of the funds barrowed can be subject to a disagreement betvveen the fund suppliers and the fund demanders. This disagreement is overcome by the mediator fırms. Predominantiy, the amount of fund demanded is high where as the amount of fun supplied is relatively lovver. This dismatch on the amount of the funds is olso solved by the intermediator fırm. With the help of the intermediators, fund demanders and fund supplier scan search for altemative revenues with minimum costs. Financial institutions also play roll in utilizing the excess funds in the economy and decreasing the rate of the interest due to the reduction of money demand. in the todays economy ali transactions about money and credft are usually done by banks. Banks act mediators betvveen individuals vvho need money. Due to this banks are assocations where money demand and supply meet and vvhere most of the credit transactions take place. The banking system expresses ali the structural order and relations of ali banks vvorking in different fields. ixThis system is established either independently or under state control. The banks in the system are classified as big banks or small banks according to their branch numbers. Therefore their services are also parallel to their types. Banks are companies established to give profit to their slaveholders. Among the services that the banks give especially credit service is very important for individuals and country's economy. As a matter of fact banks accept deposits of house holds and distribute this money to many places in many ways. The goverments has taken under control all banking activities in order to protect the investors toward unqualified management. These inventions of goverment are in conservative and indicative ways. The (money in) deposits of commercial banks are also accepted as money supply together with the banknotes emitted by the Central Bank and coins emitted by the treasury. The Central Bank manage the money supply according to the needs of the economy. This is not an easy job. On one hand, the central bank should lead a production increasing money and credit policy and on the other hand should prevent inflation without creating stagflation in the economy. Therefor in most of the countries, the monetary policy managment is collected in one hand and the Central Bank is in charge of this managment. Although in most of the counties the money supply management is in the hands of the central bank. The central bank can not lead a different strategy from the general economic policy of the goverment. When the goverment and the central bank come across a disagreement, usually the govermenf s requairments are taken into account for a solution. All deposit types are considered to be money, since they suffice all the functions of money. There for, they are called deposit money The differences and similarities of deposit money and real money are explained in detail the fifth chapter. The deposit money is formed by reserve requirements, the return of credit to the bank in the form of deposit ad credit demand of money in the market. How these forms of money operate is studied in detail, with examples in the fourth chapter. Today money issuing is done by central banks by obeying certain rules. Apart from this Central Banks has the authory to identify the rediscount rates, to make open markets operations, to define credit limits and reserve rations. Central Banks can effect the deposit and credit amount of commercial banks and the distribution of credits to different sectors of economy. We could see the activities and functions of central banks and their effect to the economies in the sixth chapter.The improvments of the central banking system in Turkey in between the years 1987-1995 are quite a lot. In between these years the Central Bank has first built up the infrastructure and brought into life the vital tools of the money markets which are foreing exchange, gold and bond markets. Within this period, the convertibility of the TL. Has been obtained with the help of the improvements in the international capital markets. With new money program,the external and internal value of the TL. has been taken under control. Within time, together with goverment changes, the position of the central bank has also changed and there have been improvements to it's responsibilities and authorities. However the implementation of the authorities have changed within time and therefor the economy has come across bottlenecks from time to time. The result of the wrong policies and irregular controlling is the 5th of April decisions. The reasons of the 5th of April decisions, the precoutions taken, the legislations installed and the application of them and the implications have brought us to the present situation of Turkey. The evaluation of the situation is made in the sixth part. In the final part, the importance of the autonomy of the central bank at controlling and directing the money markets is emphasised,and advices for Turkey's situations are given. XI