The Effects of Exchange Rate Risk on Economic Performance : The Turkish Experience
AbstractThis study examines the effects of real exchange rate risk on the economic performance for an emerging, small open economy: Turkey. When the ratios of the total foreign exchange liabilities of the Central Bank of the Republic of Turkey (CBRT) to: (1) total reserves; (2) the CBRT's reserves; and (3) the CBRT's total Turkish lira liabilities are taken proxy of exchange rate risk, the empirical evidence suggests that the increase in exchange rate risk causes a depreciation in the real exchange rate, an increase in prices and a decrease in output.
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Bibliographic InfoPaper provided by Bilkent University, Department of Economics in its series Departmental Working Papers with number 0513.
Date of creation: 2005
Date of revision:
Other versions of this item:
- Hakan Berument & N. Nergiz Dincer, 2004. "The effects of exchange rate risk on economic performance: the Turkish experience," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2429-2441.
- NEP-ALL-2006-05-13 (All new papers)
- NEP-CBA-2006-05-13 (Central Banking)
- NEP-FMK-2006-05-13 (Financial Markets)
- NEP-IFN-2006-05-13 (International Finance)
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