IDEAS home Printed from https://ideas.repec.org/p/tek/wpaper/2004-3.html
   My bibliography  Save this paper

Inflation Dynamics and Its Sources in The Ottoman Empire: 1586-1913

Author

Listed:
  • Hakan Berument

    (Bilkent University)

  • Aslý Günay

    (Bilkent University)

Abstract

This study examines the dynamics and determinants of inflation in the Ottoman Empire during the 1586-1913 period. There might be two main reasons for inflation: fiscal expansion and monetary expansion where the monetary expansion could be generated through the debasement of local currency (Akçe). We used a set of political and structural variables in order to explain the change in the inflation dynamics. In particular, we considered the war years, periods of Ottoman history which show different characteristics (the slow down period, the recession period and the break up period) and the period of constitutional monarchy. Moreover, we tested if the inflation process was the same for each sultan and all of the sultan behaved differently from the rest of their reign during their first year. Accordingly, the empirical evidence reported here suggests that war accelerated inflation as expected and fiscal expansion rather than the debasement of the Akçe was a main reason for inflation. Moreover, the slow down, the recession and the break up periods affected inflation positively; both fiscal expansion and the debasement of the Akçe were seen in these three periods as sources of inflation. In addition, each sultan had different inflationary policies during his period. However, each sultan accelerated inflation in the first year of his reign by the debasement of the Akçe or by fiscal expansion. Last, the constitutional monarch period had a significant positive effect on inflation; however, fiscal expansion rather than the debasement of the Akçe was the source of inflation in this period.

Suggested Citation

  • Hakan Berument & Aslý Günay, 2004. "Inflation Dynamics and Its Sources in The Ottoman Empire: 1586-1913," Working Papers 2004/3, Turkish Economic Association.
  • Handle: RePEc:tek:wpaper:2004/3
    as

    Download full text from publisher

    File URL: http://www.tek.org.tr/dosyalar/OTTOMAN.pdf
    Download Restriction: no

    Other versions of this item:

    More about this item

    Keywords

    Inflation; Debasement; Fiscal Expansion and Ottoman Empire;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

    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:tek:wpaper:2004/3. 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: (Ercan Uygur). General contact details of provider: http://edirc.repec.org/data/tekkkea.html .

    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.