Economic uncertainty and credit crunch - Evidence from an emerging market

Date

2003-07-01

Author

Rhoades, SD
Güner, Zehra Nuray

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

229
views

0
downloads

Using both univariate and multivariate analyses, this paper attempts to determine whether a credit crunch occurred in the Turkish economy during the 1990s. It also addresses the question of whether this credit crunch was a supply-side- or a demand-side-originated phenomenon. Economic uncertainty is proxied by unanticipated inflation. The analyses are carried out by controlling for political uncertainty as well. The results indicate that economic uncertainty has a significantly negative impact on the supply of and the demand for loans. Also, there is evidence that a supply-side-originated credit crunch occurred in the Turkish economy.

Subject Keywords

General Economics, Econometrics and Finance, Finance

URI

https://hdl.handle.net/11511/35197

Journal

EMERGING MARKETS FINANCE AND TRADE

DOI

https://doi.org/10.1080/1540496x.2003.11052547

Collections

Department of Business Administration, Article

Suggestions

OpenMETU
Core

Macroeconomic variables and the housing market in Turkey Sarı, Ramazan; AYDIN, Bahadir (Informa UK Limited, 2007-09-01) This paper investigates the relation between housing starts and macroeconomic variables in Turkey from 1961 to 2000. The generalized variance decomposition approach is used to examine relations between housing market activity and prices, interest rates, output, money stock, and employment. In contrast to previous findings for developed countries, our results indicate that the monetary aggregate has a relatively more important and substantial effect on housing investment than does employment. Generally speak...
Monetary policy trilemma, inflation targeting and global financial crisis Gulsen, Eda; Özmen, Erdal (Wiley, 2020-04-01) We empirically investigate the validity of the monetary policy trilemma postulation for emerging market (EME) and advanced (AE) economies under different exchange rate and monetary policy regimes before and after the recent global financial crisis (GFC). Consistent with the dilemma proposition, domestic interest rates are determined by global financial conditions and the FED rate even under floating exchange rate regimes (ERR) in the long-run. The impact of the FED rates is higher in EME than AE and EME are...
Deviations from PPP and UIP in a financially open economy: The Turkish evidence Özmen, Erdal (Informa UK Limited, 2004-07-01) This paper investigates the interrelations between purchasing power parity (PPP) and uncovered interest parity (UIP) in Turkey using Johansen cointegration analysis for a system containing Turkish and US inflation rates, interest rates, and exchange rate. The results of a structural model obtained by data-acceptable over-identifying restrictions over the cointegration space suggest the existence of two cointegration vectors representing UIP and PPP with proportionality and symmetry conditions, respectively....
Oil Prices and Emerging Market Exchange Rates Turhan, Ibrahim; Hacıhasanoğlu, Erk; Soytaş, Uğur (Informa UK Limited, 2013-01-01) This paper investigates the role of oil prices in explaining the dynamics of selected emerging countries' exchange rates. Using daily data series, the study concludes that a rise in oil prices leads to significant appreciation of emerging economies' currencies against the U.S. dollar. The authors divide daily returns from January 3, 2003, to June 2, 2010, into three subsamples and test the impact of changes in oil prices on exchange rate movements, generalizing impulse response functions to track the dynami...
Macroeconomics of twin targeting in Turkey analytics of a financial computable general equilibrium model TELLİ, ÇAĞATAY; Voyvoda, Ebru; YELDAN, ALP ERİNÇ (Informa UK Limited, 2008-03-01) The paper provides an overview of the post-1998 Turkish economy and constructs a macroeconomic computable general equilibrium (CGE) model to illustrate the real and financial sectoral adjustments of the Turkish economy under the conditionalities of the 'twin targets': on primary surplus to gross national product (GNP) ratio and on the inflation rate. We further utilize the model to study three sets of issues: (i) the critical role of the expanded foreign capital inflows in resolving the macroeconomic impass...

Citation Formats

S. Rhoades and Z. N. Güner, “Economic uncertainty and credit crunch - Evidence from an emerging market,” EMERGING MARKETS FINANCE AND TRADE, pp. 5–23, 2003, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/35197.