The aim of this study is to investigate the effects of government spending shocks on the real exchange rate and foreign trade balance in Turkey for the period of 2002:01-2012:04 within a structural VAR framework. The analysis shows that a positive shock to the government spending tends to induce...

Bu çalışmada amaçlanan, yapısal bütçe dengesini hesaplayarak Türkiye’de 2006-2010 döneminde mali duruşu ortaya koymak ve bütçe dengesinin devresel hareketlerden ne ölçüde etkilendiğini belirlemeye çalışmaktır. Yapısal bütçe dengesinin üç aşamada hesaplandığı bu...

This paper examines the dynamic effects of fiscal policy shocks on the Turkish economy using a three-variable structural vector autoregressive (SVAR) model for the period 1987:q1 – 2005:q4. The first differences of the variables are used, but the long-run relationship between the levels of the...

This paper estimates a New Keynesian open economy DSGE model for Turkey by using Bayesian estimation technique for the period of 2002:q1–2009:q3. It studies fiscal and monetary policy interactions and their role in stabilisation of the economy using a small-scale model following the...

<title>Abstract</title> In this study we test the long-run validity of the Expectation Hypothesis of the Term Structure (EHTS) in Turkey by using monthly interest rate series from 2003m1 to 2010m1. The data set is obtained from the bonds and bills market for the government securities in the Istanbul Stock...

This paper examines measures of excess liquidity for Turkey and the role they play on the future price developments. The measures used in the study are the real money gap and its various sub-components such as pure money shocks and excess liquidity due to the money market. The coefficients,...

Purpose – The purpose of this paper is to investigate whether the inclusion of uncertainty variables in the demand for money function can produce a stable relationship in Turkey. Design/methodology/approach – The stability of a money demand function is studied by testing parameter constancy...

In this paper we estimate a monetary disequilibrium model for Turkey based on Khan and Knight's [Khan, M. S., & Knight, M. D. (1981). Stabilization programs in developing countries: a formal framework. IMF Staff Papers, 28, 1-53] framework. Our results show the importance of fiscal discipline in...

This paper examines the constraints on the dynamics of the US Dollar and the Euro exchange rates relative to the Turkish lira after the full fledged Inflation Targeting regime was adopted in 2006. Despite the floating exchange rate regime during our sample period, one source of these constraints...