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Inflation, inflation uncertainty, and monetary policy in Turkey: 1960-1998

  • TF. Nas
  • MJ. Perry
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    The authors constructed a time series of monthly inflation uncertainty in Turkey from 1960 to 1998 using GARCH models and investigated the link between inflation and inflation uncertainty using Granger tests. The authors found strong statistical support that inflation significantly raised inflation uncertainty in Turkey over the full sample period and three subsamples. The evidence on the effect of inflation uncertainty on average inflation is mixed and depends on the time period examined. An analysis of the political conditions and the record of macroeconomic policy making in Turkey between 1960 and 1998 reveal institutional and political factors that can help explain the empirical results. Copyright 2000 Western Economic Association International.

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7287.2000.tb00015.x
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    Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

    Volume (Year): 18 (2000)
    Issue (Month): 2 (04)
    Pages: 170-180

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    Handle: RePEc:bla:coecpo:v:18:y:2000:i:2:p:170-180
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