An Analysis of Time Inconsistency in Turkey with ARDL Method
Since two main principles of the monetary policy are credibility and transparency, central banks aim to develop long-run policies. However, contemporary monetary policy approach requires that central banks are responsible for developing short-run stability policies as well. Within this context, central banks find themselves in a trade-off between short-run and longrun policy developments. Because of this trade off time inconsistency reveals. In this article, we investigate if TCMB’s monetary policy after 2001 creates time inconsistency by using ARDL method. The findings indicate that TCMB’s monetary policy didn’t create time inconsistent results. Findings also showed that economic agents have rational expectations.
Volume (Year): 4 (2010)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: Atatürk Bulvarı No:191 B Blok 06680 KAVAKLIDERE/ANKARA|
Phone: +90-312-455 65 00
Fax: +90-312-424 08 77
Web page: http://www.bddk.org.tr/WebSitesi/turkce/Raporlar/BDDK_Dergi/BDDK_Dergi.aspx
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bdd:journl:v:4:y:2010:i:2:p:85-110. 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: (Zafer Kovancý)
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.