Show/Hide Menu
Hide/Show Apps
Logout
Türkçe
Türkçe
Search
Search
Login
Login
OpenMETU
OpenMETU
About
About
Open Science Policy
Open Science Policy
Open Access Guideline
Open Access Guideline
Postgraduate Thesis Guideline
Postgraduate Thesis Guideline
Communities & Collections
Communities & Collections
Help
Help
Frequently Asked Questions
Frequently Asked Questions
Guides
Guides
Thesis submission
Thesis submission
MS without thesis term project submission
MS without thesis term project submission
Publication submission with DOI
Publication submission with DOI
Publication submission
Publication submission
Supporting Information
Supporting Information
General Information
General Information
Copyright, Embargo and License
Copyright, Embargo and License
Contact us
Contact us
Exchange rate pass-through to domestic prices in Turkish economy
Download
index.pdf
Date
2003
Author
Alper, Koray
Metadata
Show full item record
Item Usage Stats
319
views
0
downloads
Cite This
In this study, determinants and the evolution of the exchange rate passthrough to domestic inflation in the Turkish economy is analyzed. The analyses cover the 1987-2003 period. In the analyses, single equation أError Correction Modelsؤ are used to estimate the exchange rate pass-through. Estimation results suggest that alike other emerging countries, the degree of exchange rate passthrough to domestic prices is high and the pass-through is completed in a very short time span. Estimations results also indicates that the main factors to account for high pass-through are the past currency crises and the high degree of openness of the economy. These factors create the ground for the indexation behavior of agents. Although, above-mentioned factors are the main determinants of the degree of exchange rate pass-through, the persistency and the volatility of exchange rates can significantly affect the short run dynamics of the pass-through. The results imply that even if the pass-through slows down due to the changing pattern of exchange rates, to achieve the low and stable inflation in the long run, fundamental factors that exacerbate the link between exchange rates and prices should change.
Subject Keywords
Exchange rate pass-through
,
Inflation
URI
http://etd.lib.metu.edu.tr/upload/12604743/index.pdf
https://hdl.handle.net/11511/14116
Collections
Graduate School of Social Sciences, Thesis
Suggestions
OpenMETU
Core
Exchange rate pass-through into domestic price indicators: a sectoral analysis of Turkish economy
Özen, Emine Özgü; Akbostancı Özkazanç, Elif; Department of Economics (2011)
The question of exchange rate pass-through into domestic inflation is a widely analyzed issue due to its importance as regards to monetary policy, exchange rate policy and in general macroeconomic policy for open economies. Although most of the literature is focused on the exchange rate pass-through at the aggregate level, there are fewer studies that are done at the sectoral level for the Turkish economy. In this study by using a distribution chain of pricing model developed by McCarthy (2000), pass-throug...
Debt sustainability and the exchange rate: The case of Turkey
Keyder, Nur (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2003-6-1)
The paper attempts to estimate the primary surplus requirement for debt sustainability in Turkey, taking into consideration not only the operational deficit and seigniorage factors but also the exchange rate factor. In estimations, a modified version of the approach suggested by the World Bank (World Bank, 2000, “Turkey-Country Economic Memorandum-Structural Reforms for Sustainable Growth, Vol. I and II”, Report No. 20657-TU, Washington, DC, 16-18; 121-4) is used. The analysis is carried out in two steps. F...
Frequency domain approach and short run and long run causality test: Evidence from Turkey for interest rate and exchange rate relationship
Tarı, Recep; Abasız, Tezcan (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2009-12-1)
Relationship between short term nominal interest rates and nominal exchange rates that the Central Bank in Turkey used as a means of monetary policy tool during the period of 1987:1-2008:1 was analysed by using frequency domain approach within the framework of spectral analysis. According to the findings, the causal relationship from the exchange rate to the interest rate was valid only for the short run, whereas this relationship was effective for totally 45 months before, during and after the crisis. The ...
Exchange Rate Regimes and Business Cycles: An Empirical Investigation
Erdem, Fatma Pinar; Özmen, Erdal (2015-11-01)
This paper empirically investigates the impacts of domestic and external factors along with exchange rate regimes (ERRs) on business cycles in a large panel of advanced and emerging market economies (EME). The results for classical business cycles suggest that EME tend to experience much deeper recessions and relatively steeper expansions during almost the same duration. The probability of expansions significantly increases with ERR flexibility. Our results strongly support floating ERR for both advanced an...
Modeling of exchange rates by multivariate adaptive regression splines and comparison with classical statistical methods
Köksal, Ece; Weber, Gerhard Wilhelm; Department of Financial Mathematics (2017)
Economic factors like inflation, interest rates and exchange rates are among the leading indicators of a country’s relative level of economic health. With the help of technological improvements and global requirements, trading volume and a wide range of commerce network, exchange rates play a vital role in economics and finance since a higher exchange rate may result in a lower trade balance of a country, whereas a lower rate may cause an increase. Inflation, interest rates, domestic money supply growth, a ...
Citation Formats
IEEE
ACM
APA
CHICAGO
MLA
BibTeX
K. Alper, “Exchange rate pass-through to domestic prices in Turkish economy,” M.S. - Master of Science, Middle East Technical University, 2003.