The Evolution of Exchange Rate Pass-Through in Turkey: Does Inflation Targeting Matter?

Yıl 2014, Cilt: 3 Sayı: 1, 26 - 33, 01.06.2014

Dincer Dedeoglua Huseyin Kayab

Öz

In this paper, we aim to investigate the behaviour of exchange rate pass-through in Turkey. We examine how the pass-through evolves over time by employing a rolling VAR. We find that the exchange rate pass-through has declined sharply after the adoption of inflation targeting regime. Additionally, we find that the exchange rate has a larger impact on the producer prices than on the consumer prices, and the gap between two impacts has significantly increased after the implementation of inflation targeting

Anahtar Kelimeler

Exchange Rate, Pass-Through, Rolling Var, Inflation Targeting

Kaynakça

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