Advanced Search
MyIDEAS: Login

Exchange Rates and the Money Demand Process during the Persistently High Inflation Period in the Turkish Economy: Causes and Dynamics

Contents:

Author Info

  • Savaþ Bilal

    (Aksaray University)

Registered author(s):

    Abstract

    The money demand process in Turkey during the period 1987:1-2002:3 can be explained better in the sense of Cagan (1956) rather than in the sense of Sargent et al.(1973).Cagan assumes the exogeneity of money. Sargent et al. suggest the endogeneity of money. Implicitly, the money supply process with regard to Turkish inflation is unpredictable with respect to the past history of prices, i.e. either inflation or currency depreciation. Therefore, the Turkish monetary regime may be described as a random walk monetary standard with short-term (myopic) discretionary policies used by the authorities. Moreover, the unpredictable money growth implies that the Central Bank’s passive monetary policy implementations help maintain the persistently high inflationary process in Turkey.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.tek.org.tr/dosyalar/ExchangeRateBasedPricing.pdf
    File Function: Revised version, 2008
    Download Restriction: no

    Bibliographic Info

    Paper provided by Turkish Economic Association in its series Working Papers with number 2008/2.

    as in new window
    Length: 22 pages
    Date of creation: 2008
    Date of revision: Feb 2008
    Handle: RePEc:tek:wpaper:2008/2

    Contact details of provider:
    Postal: Hoşdere Cad. 24/4, TR-Çankaya, Ankara
    Phone: (+90 312) 468 25 89
    Fax: (+90 312) 468 25 99
    Email:
    Web page: http://www.tek.org.tr/
    More information through EDIRC

    Related research

    Keywords: Demand for Money; High Inflation; Granger Causality; Exogeneity of Money; Endogeneity of Money; Exchange Rate-Based Pricing;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:tek:wpaper:2008/2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ercan Uygur).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.