The Effects Of Inflation Accounting On Macroeconomic Equilibria: An Assessment Of Its Interaction With Monetary Policy and The Case Of Turkiye
Author(s)
Download Full PDF Pages: 31-40 | Views: 3 | Downloads: 1 | DOI:
Volume 15 - September 2026 (09)
Abstract
This study aims to examine the potential effects of inflation accounting on macroeconomic equilibria and its interaction with the monetary policy transmission mechanism from a theoretical and conceptual perspective. A qualitative research design is employed through literature review, document analysis, and conceptual synthesis. The study brings together the literature on inflation accounting, monetary policy transmission, financial information quality, Turkish Accounting Standard 29 (TAS 29), relevant Turkish regulations, and recent monetary policy documents of the Central Bank of the Republic of Türkiye.
The main conclusion is that inflation accounting should not be considered a direct monetary policy instrument. However, by improving the quality of financial information, it may indirectly influence the operation of the credit, balance-sheet, investment, and financial-stability channels of monetary policy transmission. Accordingly, this study proposes a conceptual framework called the “financial information channel” to explain the interaction between inflation accounting and monetary policy. Through this channel, inflation accounting may improve the representation of firms' real economic conditions, reduce information asymmetry, improve the risk assessment of lenders and investors, and consequently affect the conditions under which monetary policy decisions are transmitted to the real sector. The reintroduction of TAS 29 in Türkiye after 2023 provides an important setting for investigating this relationship. The study develops testable research propositions for future empirical research involving corporate investment, credit financing, financing costs, financial information quality, and capital-market indicators
Keywords
Inflation accounting, TAS 29, monetary policy, monetary transmission mechanism, financial information quality, information asymmetry, financial stability.
References
Bernanke, B. S., & Gertler, M. (1995). Inside the black box: The credit channel of monetary policy transmission. Journal of Economic Perspectives, 9(4), 27–48. https://doi.org/10.1257/jep.9.4.27
Bernanke, B. S., Gertler, M., & Gilchrist, S. (1999). The financial accelerator in a quantitative business cycle framework. In J. B. Taylor & M. Woodford (Eds.), Handbook of macroeconomics (Vol. 1, pp. 1341–1393). Elsevier. https://doi.org/10.1016/S1574-0048(99)10034-X
Chambers, R. J. (1966). Accounting, evaluation and economic behavior. Prentice-Hall.
Christensen, H. B., Fraccaroli, N., & Mazzotta, S. (2019). Accounting quality and the transmission of monetary policy. Journal of Accounting and Economics, 68(2–3), 101265. https://doi.org/10.1016/j.jacceco.2019.101265
Edwards, E. O., & Bell, P. W. (1961). The theory and measurement of business income. University of California Press.
Esen, Ö., Yıldırım, D. Ç., & Atik, B. (2026). Assessing inflation accounting practices in Türkiye: Structural challenges and strategic proposals. The Journal of Social Sciences Research, 21(1).
Fama, E. F. (1970). Efficient capital markets: A review of theory and empirical work. The Journal of Finance, 25(2), 383–417. https://doi.org/10.2307/2325486
IFRS Foundation. (2026). IAS 29: Financial reporting in hyperinflationary economies. https://www.ifrs.org/issued-standards/list-of-standards/ias-29-financial-reporting-in-hyperinflationary-economies/
Kirkulak, B., & Balsari, Ç. K. (2009). Value relevance of inflation-adjusted equity and income. The International Journal of Accounting, 44(4), 363–377. https://doi.org/10.1016/j.intacc.2009.09.007
Kirkulak, B., & Balsari, Ç. K. (2009). Inflation accounting and stock returns: Evidence from İstanbul Stock Exchange (ISE). Istanbul Stock Exchange Review, 11(42), 19–34.
Li, X.-L., Yang, M., Ge, X., & Zhao, C. (2025). Monetary policy uncertainty and corporate credit financing in China: The role of accounting information quality. Economic Modelling, 144, 106990. https://doi.org/10.1016/j.econmod.2024.106990
Mishkin, F. S. (1996). The channels of monetary transmission: Lessons for monetary policy. NBER Working Paper No. 5464. National Bureau of Economic Research. https://doi.org/10.3386/w5464
Poroy Arsoy, A., & Gücenme, Ü. (2009). The development of inflation accounting in Turkey. Critical Perspectives on Accounting, 20(5), 568–590. https://doi.org/10.1016/j.cpa.2008.01.006
Reyhan, Y. (2025). Türkiye'de enflasyon muhasebesinin tarihsel seyri ve uygulama süreci. Muhasebe ve Finans Tarihi Araştırmaları Dergisi, (29).
Tutar, S., & Altın, M. (2025). Enflasyon muhasebesi, kazanç yönetimi ve raporlama kalitesi: BIST 100 şirketleri üzerine bir araştırma. İşletme Araştırmaları Dergisi, 17(4), 3433–3447. https://doi.org/10.20491/isarder.2025.2160
Türkiye Cumhuriyet Merkez Bankası. (2025). 2026 para politikası. Türkiye Cumhuriyet Merkez Bankası.
Türkiye Cumhuriyet Merkez Bankası. (2026). Enflasyon Raporu 2026-I. Türkiye Cumhuriyet Merkez Bankası.
Türkiye Cumhuriyet Merkez Bankası. (2026). Enflasyon Raporu 2026-II. Türkiye Cumhuriyet Merkez Bankası.
Türkiye Cumhuriyet Merkez Bankası. (2026). Enflasyon Raporu 2026-III. Türkiye Cumhuriyet Merkez Bankası.
Türkiye Cumhuriyet Merkez Bankası. (2026). Finansal İstikrar Raporu, Sayı 42. Türkiye Cumhuriyet Merkez Bankası.
Türkiye Cumhuriyet Merkez Bankası. (2026). Yayınlar. Türkiye Cumhuriyet Merkez Bankası.
Kamu Gözetimi, Muhasebe ve Denetim Standartları Kurumu. (2024). Enflasyon muhasebesi uygulama rehberi. KGK.
Kamu Gözetimi, Muhasebe ve Denetim Standartları Kurumu. (2026). Türkiye Muhasebe Standartları: TMS 29 Yüksek enflasyonlu ekonomilerde finansal raporlama. KGK.
Woodford, M. (2003). Interest and prices: Foundations of a theory of monetary policy. Princeton University Press.
Cite this Article: