IDEAS home Printed from
   My bibliography  Save this article

Are devaluations contractionary? The case of Turkey


  • Mehmet Sencicek
  • Kamal Upadhyaya


This article studies the output effects of currency devaluation in Turkey using annual data from 1970 to 2004. An empirical model that incorporates monetary, fiscal and other external variables in addition to exchange rates is developed. Before estimating the model, time-series properties of the data are diagnosed. Two forms of the model, one with real exchange rate and the other with nominal exchange rate and relative price level (foreign-to-domestic price ratio) are estimated. The results suggest that devaluation is contractionary in the short run, expansionary in the medium run and neutral in the long run, and the effects emanate from nominal devaluation and not from the changes in relative price level.

Suggested Citation

  • Mehmet Sencicek & Kamal Upadhyaya, 2010. "Are devaluations contractionary? The case of Turkey," Applied Economics, Taylor & Francis Journals, vol. 42(9), pages 1077-1083.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:9:p:1077-1083
    DOI: 10.1080/00036840701721208

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:kap:ecopln:v:51:y:2018:i:2:d:10.1007_s10644-017-9201-x is not listed on IDEAS
    2. Tatiana Evdokimova & Pavel Trunin & Andrei Zubarev, 2013. "The Impact of the Real Ruble Exchange Rate on the Economic Activity in Russia," Research Paper Series, Gaidar Institute for Economic Policy, issue 165P, pages 164-164.

    More about this item


    Access and download statistics


    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:taf:applec:v:42:y:2010:i:9:p:1077-1083. 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: (Chris Longhurst). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.