Asymmetric exchange rate policy in inflation targeting developing countries

Cömert, Hasan
Öcal, Nadir
Institute for International Political Economy


Asymmetric interest rate effects for the UK real economy
Sensier, M; Osborn, DR; Ocal, N (Wiley, 2002-09-01)
Recent literature has uncovered asymmetries in the response of real output to monetary policy variables. Nevertheless, it remains unclear whether such asymmetries relate to different responses to monetary policy or to the business cycle. This paper uses nonlinear models to examine the issues in the context of interest rate effects on quarterly UK GDP growth. Strong evidence of nonlinearity is found, with asymmetry relating to the business cycle through lagged GDP regimes and interest rate changes. The resul...
Asymmetric exchange rate intervention under inflation targeting regimes : the case of Turkey, 2002-2008
Benlialper, Ahmet; Cömert, Hasan; Department of Economics (2013)
Especially, after the 2000s, many developing countries let exchange rates float and began implementing inflation targeting regimes based on mainly manipulation of expectations and aggregate demand. However, most developing countries implementing inflation targeting regimes experienced considerable appreciation trends in their currencies. Might have exchange rates been utilized as implicit tools even under inflation targeting regimes in developing countries? To answer this question and investigate the determ...
Asymmetric Interest Rate Pass-Through to Turkish Loan Rates
Yıldırım Kasap, Dilem (2014-01-01)
This paper aims to investigate the actual nature of the interest rate pass-through to Turkish cash, automobile, housing and corporate loan rates. Focusing on the possibility of nonlinearity in the adjustment of lending rates due to financial market conditions and monetary policies, we adopt the threshold autoregressive (TAR) and momentum threshold autoregressive (MTAR) models of Enders and Siklos (2001). Empirical results suggest substantial asymmetries (nonlinearities) in all lending rates. More specifical...
Asymmetric pass-through between oil prices and the stock prices of clean energy firms: New evidence from a nonlinear analysis
Kocaarslan, Baris; Soytaş, Uğur (2019-11-01)
There is an ongoing debate on how oil prices affect the stock prices of clean energy companies. We contribute to this debate by questioning the possibility of asymmetric linkages between oil prices, interest rates, and the stock prices of clean energy and technology firms. Using a recently developed approach (nonlinear auto-regressive distributed lag (NARDL) model), we document that ignoring the presence of nonlinearities leads to misleading results. The analyses reveal significant asymmetric effects among ...
Asymmetric Confidence Interval with Box-Cox Transformation in R
Dağ, Osman; İlk Dağ, Özlem (null; 2017-12-08)
Normal distribution is important in statistical literature since most of the statistical methods are based on normal distribution such as t-test, analysis of variance and regression analysis. However, it is difficult to satisfy the normality assumption for real life datasets. Box–Cox power transformation is the most well-known and commonly utilized remedy [2]. The algorithm relies on a single transformation parameter. In the original article [2], maximum likelihood estimation was proposed for the estimation...
Citation Formats
H. Cömert and N. Öcal, “Asymmetric exchange rate policy in inflation targeting developing countries,” Institute for International Political Economy, vol. 2017, no. 86, pp. 1–26, 2017, Accessed: 00, 2021. [Online]. Available: