Author/Authors
GÜNEŞ, Şahabettin Abant İzzet Baysal Üniversitesi - Iktisadi ve Idari Bilimler Fakültesi (İİBF) - İktisat Bölümü, Turkey
Title Of Article
AN ANALYSIS ON THE EXCHANGE RATE REGIME IN TURKEY AND ITS EFFECT ON INFLATION
شماره ركورد
39754
Abstract
In this study the relationship between price levels in Turkey and enxchange rates of US Dollar and Euro has been investigated. Cointegration analysis has been used in order to see the presence of long-run relationship between the variables. To see the direction of the relationship and the short-run dynamics between the selected variables, a Vector Error Correction Model (VECM) analysis has been utilized. The results show that there is a long-run equilibrium relationship between price levels in Turkey and the two exchange rates, (USD/TRY) and (EUR/TRY). The VECM estimates reveal that long run causality runs from the Exchange rates to inflation. As a result, the higher the exchange rates, the higher the inflation in Turkey.
From Page
65
NaturalLanguageKeyword
Exchange rates , Inflation , Cointegration
JournalTitle
The International Journal Of Economic and Social Research
To Page
77
JournalTitle
The International Journal Of Economic and Social Research
Link To Document