Title of article
MEASURING THE EFFECTS OF MONETARY POLICY FOR TURKEY
Author/Authors
Berument, Hakan State Planning Organization - Economic Modeling Department , Berument, Hakan Bilkent University - Department of Economics, Turkey , Nergiz Dincer, N. State Planning Organization - Economic Modeling Department , Nergiz Dincer, N. Bilkent University - Department of Economics, Turkey
From page
83
To page
110
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.
Journal title
Journal of Economic Cooperation and Development
Journal title
Journal of Economic Cooperation and Development
Record number
2621152
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