IDEAS home Printed from https://ideas.repec.org/a/eas/journl/v10y2016i10p68-92.html
   My bibliography  Save this article

ASYMMETRIC TAYLOR MONETARY RULE: THE CASE of TURKEY

Author

Listed:
  • Mehmet ÖZCAN

    (Gazi Ãœniversitesi)

Abstract

In this study, Taylor Monetary Rule (TMR), that has a significant place in economics literature, is analyzed and modeled in the framework of Threshold Regression Models. The TMR Model is studied under regimes of high inflation – low inflation / high output gap – low output gap and thus the ways in which relations occur between short term rates of interest, and inflation and output gap is analyzed. The Asymmetric TMR Model projection obtained from the analysis has yielded more accurate results than the linear model projections that were applied to Turkey's economic data. The findings have shown that short term interest rates are more sensitive to the inflation change during high inflation and low output gap regimes. Moreover while Turkey's economy is experiencing high inflation regimes, the effect of output gap on short term interest rates is maximized.

Suggested Citation

  • Mehmet ÖZCAN, 2016. "ASYMMETRIC TAYLOR MONETARY RULE: THE CASE of TURKEY," Eurasian Academy Of Sciences Social Sciences Journal, Eurasian Academy Of Sciences, vol. 10(10), pages 68-92, March.
    • Handle: RePEc:eas:journl:v:10:y:2016:i:10:p:68-92
    DOI: 10.17740/eas.soc.2016.V10-05
    as

    Download full text from publisher

    File URL: https://eurasianacademy.org/index.php/socialsciences/article/view/132
    Download Restriction: no
    File URL: https://libkey.io/10.17740/eas.soc.2016.V10-05?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eas:journl:v:10:y:2016:i:10:p:68-92. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kutluk Kagan Sumer (email available below). General contact details of provider: https://www.eurasianacademy.org/index.php/socialsciences .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.