CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE

Yavuz Özek; Halil Oğuzhan Ergür

doi:10.54688/ayd.1475425

TR EN

CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE

Abstract

This paper tests the validity of the Augmented Taylor rule in the Turkish economy for the period between February 2011 and February 2024 with the structural vector autoregression model. It is found that the central bank did not use the policy rate against deviations from inflation in the relevant period. On the other hand, the policy rate moves within expectations against deviations in the output gap and the real exchange rate. According to the structural impulse-response functions, the output gap and the inflation gap respond positively to a one-unit shock to the policy rate, while the real exchange rate reacts negatively. According to the results of structural variance decomposition, the most influential variable on changes in the policy rate is the real exchange rate deficit. In conclusion, the policy rate in the Turkish economy takes into account the output gap and the real exchange rate gap. However, it ignores the inflation gap.

Keywords

augmented taylor rule, structural var model, exchange rate

References

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Details

Primary Language

English

Subjects

Macroeconomic Theory

Journal Section

Research Article

Authors

Yavuz Özek ^*
0000-0003-4517-4875
Türkiye

Halil Oğuzhan Ergür
0000-0001-9475-7036
Türkiye

Publication Date

July 7, 2024

Submission Date

April 29, 2024

Acceptance Date

June 11, 2024

Published in Issue

Year 2024 Volume: 15 Number: 2

DOI

https://doi.org/10.54688/ayd.1475425

IZ

https://izlik.org/JA79GN99BD

APA

Özek, Y., & Ergür, H. O. (2024). CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE. Journal of Academic Approaches, 15(2), 1016-1027. https://doi.org/10.54688/ayd.1475425

AMA

1.Özek Y, Ergür HO. CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE. JAA. 2024;15(2):1016-1027. doi:10.54688/ayd.1475425

Chicago

Özek, Yavuz, and Halil Oğuzhan Ergür. 2024. “CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE”. Journal of Academic Approaches 15 (2): 1016-27. https://doi.org/10.54688/ayd.1475425.

EndNote

Özek Y, Ergür HO (July 1, 2024) CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE. Journal of Academic Approaches 15 2 1016–1027.

IEEE

[1]Y. Özek and H. O. Ergür, “CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE”, JAA, vol. 15, no. 2, pp. 1016–1027, July 2024, doi: 10.54688/ayd.1475425.

ISNAD

Özek, Yavuz - Ergür, Halil Oğuzhan. “CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE”. Journal of Academic Approaches 15/2 (July 1, 2024): 1016-1027. https://doi.org/10.54688/ayd.1475425.

JAMA

1.Özek Y, Ergür HO. CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE. JAA. 2024;15:1016–1027.

MLA

Özek, Yavuz, and Halil Oğuzhan Ergür. “CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE”. Journal of Academic Approaches, vol. 15, no. 2, July 2024, pp. 1016-27, doi:10.54688/ayd.1475425.

Vancouver

1.Yavuz Özek, Halil Oğuzhan Ergür. CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE. JAA. 2024 Jul. 1;15(2):1016-27. doi:10.54688/ayd.1475425

CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE

TÜRKİYE'DE DÖVİZ KURU KONTROLÜ MERKEZ BANKASINA YARDIMCI OLABİLİR Mİ? TAYLOR KURALI ÇERÇEVESİNDE DEĞERLENDİRMELER

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CAN EXCHANGE RATE CONTROL IN TURKEY HELP THE CENTRAL BANK EVALUATIONS WITHIN THE FRAMEWORK OF THE TAYLOR RULE

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