Impact of Monetary Policy on Economic Instability in Turkey (1983 - 2003)

Abstract

Abstract:This article aims at revealing the effectiveness of Turkish monetary policy in controlling inflation rate and the stability of exchange rate using the rational expectation framework that incorporates the fiscal role of exchange rate. Based on quarterly data covering the period between 1983: Q4 and 2003: Q4, the analysis affirms that the effort of the Turkish monetary policy at influencing the finance of government fiscal deficit through the determination of the inflation-tax rate, to some extent, affects both the rate of inflation and the real exchange rate, thereby causing volatility in their rates. Moderate evidence emerges that inflation affects volatility of its own rate as well as the rate of real exchange.

The Impact of Monetary Policy on Economic Growth in Cambodia: Bayesian Approach

“…The empirical result revealed that monetary stock (M2), which is money supply, is an effective tool to influence and control the monetary assets in Pakistan. (Ferdiun, 2005), who studied the impact of monetary policy on economic instability in Turkey, confirmed that monetary policy effectiveness in Turkey's economic manages and controls over inflation and exchange rate stability. (Hameed, 2010) who also studies the impact of monetary policy on economic growth has indicated that money supply, inflation and interest rate played a major significant role on GDP growth in Pakistan.…”

Military Spending and the Sino-US Arms Race: An Analysis Using Bootstrap ARDL

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