Author/Authors :
UÇAK, Ayhan Trakya University - Department of Economics, Turkey , YILDIRAK, Kasırga Trakya University - Department of Economics, Turkey
Title Of Article :
AN ALTERNATIVE APPROACH TO ANALYZE THE MONETARY TRANSMISSION IN TURKEY: AN EMPIRICAL ANALYSIS ON SPEED OF ADJUSTMENT
Abstract :
Monetary transmission mechanism has a crucial role on the effectiveness of monetary policy. Changes in policy interest rates impact real variables through the channels of the mechanism and are transmitted to retail banking interest rates with lags that could be summarized in speed of adjustment level. We offer a model to estimate the parameter so called “speed of adjustment” and make a comparative analysis using time varying speed of adjustment for bank loans interest rates to the policy interest rates in the Turkish economy.
NaturalLanguageKeyword :
Monetary policy , policy rate , interest rate pass , through , bank loans , Hull , White model , Kalman filter
JournalTitle :
Journal Of Financial Researches and Studies
