Anticipated versus Unanticipated Money in Turkey
This Study investigates the validity of the policy ineffectiveness hypothesis of Rational Expectations-Natural Rate Models that only unanticipated policy changes affect real economic variables by using Turkish data over the period of 1980:I-1995:I. The procedure used to test the hypothesis is the autoregressive system introduced by McGee and Stasiak (1985). The empirical results reported in this paper imply that unanticipated monetary policy appears to play an insignificant role in improving real economic activity, and that anticipated monetary policy exerts a significant expansionary impact upon real economic activity. Such evidence for Turkey strongly rejects the policy ineffectiveness hypothesis of Rational Expectations-Natural Rate Models.
|Date of creation:||18 Nov 2002|
|Note:||Type of Document - Acrobat PDF; prepared on PC; to print on A4; pages: 10 ; figures: included. pdf document submitted via ftp|
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References listed on IDEAS
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