Exchange Rate Pass-Through in Turkey under Inflation Targeting Regime
Exchange Rate Pass-Through in Turkey under Inflation Targeting Regime

Author(s): Özcan Karahan
Subject(s): National Economy, Economic policy, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: exchange rate pass through; inflation targeting; error correction model; Turkey;
Summary/Abstract: Exchange rate pass through, the impact of exchange rate change on the domestic price level through changes in the import prices, has long been of interest in international economics literature. Along with the application of inflation targeting regime widely, the focus of this interest has also evolved to examine the changes in degree and speed of exchange rate pass through under inflation targeting regime. Turkey, adopted Inflation Targeting (IT) as a monetary regime between 2001 and 2006 implicitly and then explicitly, exhibits a genuine experience to be analyzed in this respect.

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