IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v43y2007i2p82-101.html
   My bibliography  Save this article

Alternative Monetary Policy Rules in the Turkish Economy Under an Inflation-Targeting Framework

Author

Listed:
  • Vuslat Us

Abstract

This study analyzes alternative monetary-policy rules in Turkey under inflation targeting (IT) using a small-scale structural macroeconomic model. The alternatives are the Taylor rule, the monetary conditions index (MCI) rule under strict IT, and the MCI rule under flexible IT. Using the MCI rule under strict IT produces slightly better results than under flexible IT and, thus, is preferable. The results also indicate that the economy stabilizes much more quickly, and shows significantly less volatility, in the second alternative. Following the Taylor rule should definitely be avoided. However, in open economies, ignoring exchange rates when setting inflation targets is certainly not an optimal solution.

Suggested Citation

  • Vuslat Us, 2007. "Alternative Monetary Policy Rules in the Turkish Economy Under an Inflation-Targeting Framework," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 43(2), pages 82-101, April.
    • Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:82-101
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J015458LV3320RG1
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Civcir, Irfan & Akçaglayan, AnIl, 2010. "Inflation targeting and the exchange rate: Does it matter in Turkey?," Journal of Policy Modeling, Elsevier, vol. 32(3), pages 339-354, May.
    2. Malikane, Christopher & Ojah, Kalu, 2014. "Fisher's Relation and the Term Structure: Implications for IS Curves," MPRA Paper 55553, University Library of Munich, Germany.
    3. Ayres, Kelly & Belasen, Ariel R. & Kutan, Ali M., 2014. "Does inflation targeting lower inflation and spur growth?," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 373-388.
    4. Vasif Abiyev & Munise Ilıkkan Özgür, 2014. "Fear of Floating and Inflation Targeting in Turkey," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 7(3), pages 25-42, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:82-101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.