in: Global Agenda in Social Sciences, Murat Aydın,İsmail Şiriner,Şevket Alper Koç, Editor, IJOPEC, London, pp.17-30, 2022
The study aims to investigate the effect of the global financial cycle on the financial cycles in Turkey by using a frequency domain causality test covering the period 1996:M01- 2021:M12. Empirical findings provide synchronization between the global financial cycle and domestic financial cycles. In addition, there are unidirectional causality stems from the global financial cycle to the credit cycle in the short-run and to the stock market cycle in the long-run. The results imply that the stock market is more vulnerable to global shocks compared to the credit market. Thus, policymakers should consider the effects of the global financial cycle on Turkish financial markets in order to evaluate any policy.