Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil

Volume: 5 Number: 3 September 1, 2015
  • Cuneyt Dumrul
  • Yasemin Dumrul
EN

Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil

Abstract

The inflation targeting (IT) strategy may create structural changes in macroeconomic variables. This study analyzes the effect of the IT strategy on the price-money supply relationship in Turkey and Brazil by Kejriwal-Perron cointegration analysis with structural breaks. The analysis aims to determine whether the IT strategy leads to regime shifts in the price index-money supply relationship in Turkey and Brazil. The Kejriwal-Perron tests reveal a structural break in the price-money supply relationship as a result of the IT strategy. In both countries, the implementation of this strategy leads to a decrease in the regime coefficients for Turkey while it creates an increase for Brazil. When Turkey and Brazil are compared in terms of money-price relationship after the IT strategy, the study reveals that it has weakened more in Brazil.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

-

Authors

Cuneyt Dumrul This is me

Yasemin Dumrul This is me

Publication Date

September 1, 2015

Submission Date

September 1, 2015

Acceptance Date

-

Published in Issue

Year 2015 Volume: 5 Number: 3

APA
Dumrul, C., & Dumrul, Y. (2015). Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil. International Journal of Economics and Financial Issues, 5(3), 701-708. https://izlik.org/JA32AF35KU
AMA
1.Dumrul C, Dumrul Y. Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil. IJEFI. 2015;5(3):701-708. https://izlik.org/JA32AF35KU
Chicago
Dumrul, Cuneyt, and Yasemin Dumrul. 2015. “Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil”. International Journal of Economics and Financial Issues 5 (3): 701-8. https://izlik.org/JA32AF35KU.
EndNote
Dumrul C, Dumrul Y (September 1, 2015) Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil. International Journal of Economics and Financial Issues 5 3 701–708.
IEEE
[1]C. Dumrul and Y. Dumrul, “Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil”, IJEFI, vol. 5, no. 3, pp. 701–708, Sept. 2015, [Online]. Available: https://izlik.org/JA32AF35KU
ISNAD
Dumrul, Cuneyt - Dumrul, Yasemin. “Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil”. International Journal of Economics and Financial Issues 5/3 (September 1, 2015): 701-708. https://izlik.org/JA32AF35KU.
JAMA
1.Dumrul C, Dumrul Y. Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil. IJEFI. 2015;5:701–708.
MLA
Dumrul, Cuneyt, and Yasemin Dumrul. “Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil”. International Journal of Economics and Financial Issues, vol. 5, no. 3, Sept. 2015, pp. 701-8, https://izlik.org/JA32AF35KU.
Vancouver
1.Cuneyt Dumrul, Yasemin Dumrul. Price-Money Relationship After Inflation Targeting: Cointegration Test With Structural Breaks For Turkey and Brazil. IJEFI [Internet]. 2015 Sep. 1;5(3):701-8. Available from: https://izlik.org/JA32AF35KU