An Econometric Analysis of the Determinants of Inflation in Turkey
IMF Working Papers, December 1, 1997
Source details
- Canonical URL
- An Econometric Analysis of the Determinants of Inflation in Turkey
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Bibliographic details
- Authors: Laura Papi, G. C. Lim
- Published: December 1, 1997
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451858389.001
Overview
- High and variable inflation has been a central feature of the Turkish economy since the 1970s.
- The paper analyzes price determination within the framework of a multi-sector macroeconomic model for the period 1970–95.
- The analysis aims to shed light on determinants of inflation in Turkey, focusing on monetary, fiscal, exchange rate, and inertial factors.
Main findings
- Monetary variables play a central role in the inflationary process:
- Initially, money (broad monetary variables) was central.
- More recently, the exchange rate has played a central role.
- Public sector deficits contribute to inflationary pressures.
- Inertial factors are quantitatively important in sustaining inflation.
- Policymakers’ commitment to active exchange rate depreciation on several occasions in the past 15 years has also contributed to the inflationary process.
Subjects and keywords
- Subject areas listed:
- Exchange rates
- Foreign exchange
- Government debt management
- Inflation
- Labor
- Prices
- Public financial management (PFM)
- Real exchange rates
- Real wages
- Keywords listed:
- cost pressure
- equilibrium exchange rate
- exchange rate disequilibrium
- Exchange rates, foreign currency
- Government debt management
- Inflation
- market disequilibrium terms
- mining sector price
- monetary policy
- price
- price determination
- price equation
- price index
- price inflation
- price level
- price markup
- public finance
- Real exchange rates
- Real wages
- WP
Content in this bundle
- An Econometric Analysis of the Determinants of Inflation in Turkey - WP/97/170