Determination of the relationship between inflation and growth for financial well-being and quality of life in Northern Cyprus

Sustainable and stable growth is of great importance in increasing the level of development and welfare in the world.It is determined that there are many factors affecting financial well-being and quality of life.These factors pose different challenges, especially in increasing the level of welfare.As a result of new areas of activity that may arise within North Cyprus, it is seen that ecosystems need to be created or improved.In this way, a different economic management approach than today needs to be adopted and used.The economic management functions required for the structural transformation agenda to be realised in North Cyprus economy should be defined.For this reason, the issue of price stability and growth is among the most important issues that macroeconomic policy cares about and on which discussions and research are carried out.Inflation is among the variables that can be a determinant of economic growth.In this study, the relationship between inflation and economic growth of North Cyprus was examined based on the period between 2000-2022.In this context, the inflation and economic growth relationship was discussed, and the relationship between the two variables was revealed through financial analysis.The reason for choosing North Cyprus in the research is to reveal the relationships between these two phenomena that affect the financial markets for the country that does not have financial and political recognition.In the study, the ADF Unit Root Test was performed to determine whether the series were stationary.When the causality relationship between the stationary inflation and economic growth variables was examined, it was determined that there was a one-way causality relationship between economic growth and inflation.