PURPOSEThis study first examines th

PURPOSE
This study first examines the stability of various money multiplier processes in the Turkish economy during the 1990-2004 period following the methodology used by Şahinbeyoğlu (1995: 1-10). This approach empirically tests the models best describing the multiplier process for the stationary characteristics required and uses co-integration estimation techniques to reveal the relationships between the base and final money supply aggregates. In addition, the study aims to reveal the relationships that may exist between the sub-components of the money multiplier process. if the multiplier process and its sub-components are stable and the relationships between base money stock and final money supply aggregates can be determined, the monetary theory prescriptions that are successfully implemented in developed countries can be similarly applied to developing economies.