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An Analysis of Central Bank Interventions on Forex Market For The Post-Crisis Period

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  • Levent Korap

    (Marmara University)

Abstract

In this paper, we investigate the determinants of foreign exchange operations of the CBRT for the post-crisis period. Using modern time series econometrics, we try to analyze the different characteristics of FOREX market, and based on the estimation results, indicate the degree of effectiveness of the interventions of monetary authority throughout the implicit inflation targeting framework. The main policy conclusion is that the CBRT interventions seem to be under the control of uncertainties in economic environment, rather than decreasing the volatilities in exchange market, and this case in turn leads the interventions being inefficient.

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File URL: http://www.tek.org.tr/dosyalar/korap_2.pdf
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Bibliographic Info

Paper provided by Turkish Economic Association in its series Working Papers with number 2006/4.

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Length: 35 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:tek:wpaper:2006/4

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  15. Rudi Dornbusch, 2002. "A Primer on Emerging-Market Crises," NBER Chapters, in: Preventing Currency Crises in Emerging Markets, pages 743-754 National Bureau of Economic Research, Inc.
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Cited by:
  1. Levent, Korap, 2007. "Modeling purchasing power parity using co-integration: evidence from Turkey," MPRA Paper 19584, University Library of Munich, Germany.
  2. Levent, Korap, 2007. "Analyzing CBRT's FOREX interventions using EGARCH (2001-2006)," MPRA Paper 20634, University Library of Munich, Germany.
  3. Levent, Korap, 2007. "Information content of exchange rate volatility: Turkish experience," MPRA Paper 19598, University Library of Munich, Germany.

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