Monetary policy rules in practice: Re-examining the case of Turkey

Hasanov, Muebariz; OMAY, TOLGA

doi:10.1016/j.physa.2008.02.075

Monetary policy rules in practice: Re-examining the case of Turkey

Atıf İçin Kopyala

Hasanov M., OMAY T.

PHYSICA A-STATISTICAL MECHANICS AND ITS APPLICATIONS, cilt.387, ss.4309-4318, 2008 (SCI-Expanded)

Yayın Türü: Makale / Tam Makale
Cilt numarası: 387
Basım Tarihi: 2008
Doi Numarası: 10.1016/j.physa.2008.02.075
Dergi Adı: PHYSICA A-STATISTICAL MECHANICS AND ITS APPLICATIONS
Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
Sayfa Sayıları: ss.4309-4318
Hacettepe Üniversitesi Adresli: Evet

Özet

This paper investigates possible asymmetries in the monetary policy reaction function of the Central Bank of Republic of Turkey over the business cycles. It is found that the bank reacted more aggressively towards output stabilisation during recessions than expansions. The empirical evidence suggests that the inflation targeting policy of the Turkish Central Bank was accommodative rather than stabilising. Furthermore, it is found that although the Central Bank of Republic of Turkey responded to foreign reserves, real exchange rates and short-term capital inflows both in expansion and recession periods, the bank targeted money growth, budget deficits, and net foreign assets only in expansion periods. (c) 2008 Elsevier B.V. All rights reserved.