Try to build a model to explain the causes and effects of inflation

Abstract

The study aims to try to build a structural model, to knowledge the determinants and effects of inflation on some macroeconomic variables in Turkey, Based on the most important macro theories that discussed the problem of inflation, so We used the descriptive analytical method, and the standard method by using the two-stage least squares method. the results showed that inflation in Turkey is positively determined by the rate of growth of the monetary mass and exports, and negatively with the rate of growth of real GDP. The results also indicated that some economic variables are flexible to the changes in the GDP which allowed inflation to have a weak effect on these variables in Turkey, because the GDP is characterized by diversity and high growth.