TIME-VARYING EXCHANGE RATE PASS-THROUGH TO DOMESTIC PRICES: EVIDENCE FROM TURKEY
Küçük Resim Yok
Tarih
2023
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Institute for Economic Forecasting
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
Exchange rate fluctuations have decisive effects on inflation dynamics and monetary policy in emerging market economies. This paper analyzes exchange rate pass-through to domestic prices in Turkey by employing the TVP-VAR model for the period from 2002:01 to 2019:12. Our findings indicate that exchange rate pass-through varied throughout the relevant period. Specifically, the pass-through coefficients decreased considerably after adopting the inflation targeting regime, whereas it accelerated significantly following the exchange rate depreciations, especially after 2013. This upward trend was probably due to structural problems and policy choices. Rising pass-through coefficients may imply the exchange rate pass-through has an impact during inflation targeting. However, it should be noted that inflation targeting has underperformed in Turkey due to policy preferences in the last decade. © 2023, Institute for Economic Forecasting. All rights reserved.
Açıklama
Anahtar Kelimeler
domestic prices, Exchange rate, exchange rate pass-through, Turkey, TVP-VAR model
Kaynak
Romanian Journal of Economic Forecasting
WoS Q Değeri
Scopus Q Değeri
Q3
Cilt
26
Sayı
3
