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Effects of USD-Euro parity on a small open economy: evidence from Turkey

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  • Hakan Berument
  • Eray Yucel

Abstract

This study assesses the effect of USD-Euro parity on a small open economy where exports are predominantly denominated in Euros and imports are denominated in USD. Empirical evidence from Turkey suggests that a positive change in the USD value of the Euro appreciates the local currency, decreases inflation and increases output.

Suggested Citation

  • Hakan Berument & Eray Yucel, 2008. "Effects of USD-Euro parity on a small open economy: evidence from Turkey," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2165-2174.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2165-2174
    DOI: 10.1080/00036840600949322
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    References listed on IDEAS

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