Fiscal And Monetary Policies Effect on Borsa Istanbul (BIST) Performance

Our paper examines the impacts of monetary and fiscal policies on Borsa Istanbul (BIST) performance in Turkey. In established model, government expenditures, tax revenue, budget deficit, money supply (M2), interest rate, gdp growth rate included as independent variables BIST stock market capitalisation dependent variable for last 25 years (1995 to 2020). Firstly, Augmented Dickey - Fuller (ADF) Philips Perron (PP) unit root tests have been performed series stationarity. To confirm long run relationship, Autoregressive Distributed Lag (ARDL) cointegration technique has applied. Subsequently, error correction method used analyzing short relationship between causality tested by granger casuality test. The test results, indicate existence both performance, while exists only deficit respectively positive negative impact. results also pointed out there is a bidirectional performance. GDP cause