IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

An open economy new Keynesian macroeconomic model: The case of Turkey

Listed author(s):
  • Erhan YILDIRIM

    (Çukurova Üniversitesi)

  • Kenan LOPCU

    (Çukurova Üniversitesi)

  • Selim ÇAKMAKLI

    (Çukurova Üniversitesi)

Registered author(s):

    Keynesian Macroeconomic Model emerged at the end of the 1990s. The main characteristics of this consensus are formed by the synthesis of the New Classical, Real Business Cycle and New Keynesian approaches. Although The New Keynesian Macroeconomic Model is based on a general equilibrium model, it can typically be reduced to a three-equation system, consisting of an aggregate supply equation (Phillips curve), an aggregate demand equation (IS equation) and a monetary policy rule. The basic model assumes a closed economy. However, for a small open economy, such as Turkey, whose growth is largely affected by international capital flows, the ability of the standard New Neo-Classical Synthesis model to fully take into account economic dynamics is limited. In this paper, we attempt to extend the New Neo-Classical Synthesis model to a small open economy case by adding equations that would capture the exchange rate movements and the current account dynamics. Results indicate that the open economy New Neo-Classical Synthesis model for Turkey can provide a framework to capture the dynamics of the Turkish economy for the post financial liberalization era and explain the behavior of the Central Bank of the Republic of Turkey.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by Bilgesel Yayincilik in its journal İktisat İşletme ve Finans.

    Volume (Year): 26 (2011)
    Issue (Month): 305 ()
    Pages: 37-56

    in new window

    Handle: RePEc:iif:iifjrn:v:26:y:2011:i:305:p:37-56
    Contact details of provider: Web page:

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

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

    When requesting a correction, please mention this item's handle: RePEc:iif:iifjrn:v:26:y:2011:i:305:p:37-56. 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: (Ali Bilge)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.