  In this study, we aimed to examine the effect of VAT revenues and Deposit
Interest Rates on Inflation in Turkey between 1985-2022. Within the framework
of econometric analysis of the obtained data, the analysis was carried out
using ADF unit root test, Johansen Co-Integration Test, Error Terms and VECM
(Vector Error Correction Model) models. According to the analysis results, it
was understood that the data were stationary at the I(I) level, it was
determined that there was a cointegrated relationship between them in the long
term, and by estimating the error term, causality findings were determined
within the framework of VECM analysis. According to the causality results of
the Wald Test; causality is found from Deposit Interest Rate to VAT and
Inflation, and from Inflation to VAT and Deposit Interest Rate (bidirectional),
while causality is also found from VAT to Inflation and Deposit Interest Rates.
