Work

Measuring the Effects of Monetary Policy for Turkey

Year: 2008

Type: article

Abstract: This paper proposes a specification to identify the monetary policy for a small open economy, Turkey. The monetary policy is measured by using the spread between the Central Bank's interbank interest rate and the depreciation rate of the domestic currency. A VAR type of model is used to identify monetary policy covering the period 1986:05-2000:10. The results suggest that tight monetary policy has a transitory effect on output but a permanent effect on prices. This specification is free of some puzzles such as the price puzzle and the liquidity puzzle that hampered some of the previous studies.

Source: Bilkent University Institutional Repository (Bilkent University)

Authors: Hakan Berument, N. Nergiz Dinçer

Institutions: Bilkent University, TED University

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2159483898

FWCI: 2.837

Cites: 22

Cited by: 26

Related to: 10