AN ASYMMETRIC ANALYSIS OF THE RELATIONSHIP BETWEEN MONEY SUPPLY AND REAL INCOME: A TEST OF MONETARY AND REAL BUSINESS CYCLE HYPOTHESES FOR MIST COUNTRIES

This article aims to examine the asymmetric money-income relationship in MIST countries. For this purpose, Hatemi-J Panel Hidden Cointegration, panel causality, FMOLS and DOLS tests were applied. Asymmetric causality test results reveal that there is a bidirectional between money supply real income. The business cycle hypothesis claims growth due income not vice versa. finding obtained as result of supports both monetary hypotheses for positive negative cumulative shocks affect economy; Similarly, they state also Monetary authorities should regulate independently market order eliminate economic problems experienced sudden countries stabilize markets.