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Inflation aversion in Turkey

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  • Nebioğlu, Deniz
  • Soybilgen, Barış

Abstract

Inflation has been at the center of policy debates in Turkey since the 1970s. Although the country experienced a rapid disinflation period during the early 2000s, Turkish inflation has always remained high compared to other developing countries. Disinflationary policies require a long-run commitment of policymakers backed by public consensus and strong institutions. In this paper, we aim to understand the factors that shape the public attitudes of Turkish citizens towards inflation for the period between 2004 and 2020 using Eurobarometer data. We find that belonging to a vulnerable class increases the probability of being inflation averse, while favorable expectations for the future, being on the right of the political spectrum, and trust in politicians decrease inflation aversion.

Suggested Citation

  • Nebioğlu, Deniz & Soybilgen, Barış, 2023. "Inflation aversion in Turkey," Economic Systems, Elsevier, vol. 47(4).
    • Handle: RePEc:eee:ecosys:v:47:y:2023:i:4:s0939362523000869
    DOI: 10.1016/j.ecosys.2023.101147
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    References listed on IDEAS

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    More about this item

    Keywords

    Inflation aversion; Unemployment aversion; Central Bank communication; Monetary Policy; Turkey;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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