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Causes of Inflation in Turkey: A Literature Survey with Special Reference to Theories of Inflation

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  • Aykut Kibritcioglu

    () (Ankara University and University of Illinois at Urbana-Champaign)

Abstract

Turkey has experienced high and persistent inflation for more than twenty years. This paper attempts firstly to survey the extremely broad literature on theories of inflation. It is mainly argued that inflation may be interpreted as a net result of sophisticated and continuous interactions of demand-side (or monetary) shocks, supply-side (or real) shocks, price-adjustment (or inertial) factors and political processes (or institutional factors). The second aim of the paper is to compare the existing empirical studies on Turkish inflation, by considering their sample period, data frequency, empirical methods, modeled macroeconomic variables and main results.

Suggested Citation

  • Aykut Kibritcioglu, 2001. "Causes of Inflation in Turkey: A Literature Survey with Special Reference to Theories of Inflation," Economics Bulletin, AccessEcon, vol. 28(21), pages 1.
  • Handle: RePEc:ebl:ecbull:eb-01aa0025
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    References listed on IDEAS

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    Cited by:

    1. Daniel Leigh & Marco Rossi, 2002. "Leading Indicators of Growth and Inflation in Turkey," IMF Working Papers 02/231, International Monetary Fund.
    2. Ara Volkan & Cem Saatçioðlu & Levent Korap, 2007. "Impact of Exchange Rate Changes on Domestic Inflation: The Turkish Experience," Working Papers 2007/6, Turkish Economic Association, revised Aug 2007.
    3. Us, Vuslat, 2004. "Inflation dynamics and monetary policy strategy: some prospects for the Turkish economy," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 1003-1013, December.
    4. Cem Akyurek, 2006. "The Turkish Crisis of 2001: A Classic?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 42(1), pages 5-32, February.
    5. Oya Celasun & R. Gaston Gelos & Alessandro Prati, 2004. "Would "Cold Turkey" Work in Turkey?," IMF Staff Papers, Palgrave Macmillan, vol. 51(3), pages 493-509, November.
    6. Korap, Levent & Saatçioğlu, Cem, 2009. "New time series evidence for the causality relationship between inflation and inflation uncertainty in the Turkish economy," MPRA Paper 19246, University Library of Munich, Germany.
    7. Ebrahim, M. Shahid, 2009. "Can an Islamic model of housing finance cooperative elevate the economic status of the underprivileged?," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 864-883, December.
    8. Ilker Domac, 2003. "Explaining and Forecasting Inflation in Turkey," Working Papers 0306, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    9. Cem Akyurek, 2006. "The Turkish Crisis of 2001: A Classic?," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 42(1), pages 5-32, February.
    10. Ebrahim, M. Shahid & Mathur, Ike, 2007. "Pricing home mortgages and bank collateral: A rational expectations approach," Journal of Economic Dynamics and Control, Elsevier, vol. 31(4), pages 1217-1244, April.
    11. Ümit Özlale & Kivilcim Metin Ozcan, 2005. "Does Time Inconsistency Problem Apply For Turkish Monetary Policy?," Working Papers 2005/2, Turkish Economic Association.
    12. Ozturk, Ilhan, 2002. "Velocity Effect On Inflationary Growth of Turkey: Evidence From Co-integration Analysis and Granger's Causality Test," MPRA Paper 259, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925

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