Monetary Policy Analysis for Turkey in a Game Theoretical Perspective

Cem Mehmet Baydur, Bora Suslu and Selahattin Bekmez

Istanbul Stock Exchange Review, 2005, vol. 8, issue 29, 39-64

Abstract: The main goal of monetary authority is to create a stable output and price level in the economy. Policies to be used depend upon the relative weights of above goals for the monetary authority. Also, the expectations of other economic institutions are important for policy determination. Within this context, this research investigates various policies that the monetary authority should follow depending on the expectations of economic institutions in the country. In order to do that, we constructed a game theoretical model and showed which policy results in Nash equilibrium. The last point discussed in the research is the policy applications of the Central Bank of Turkey from 1990 to 2003.

Keywords: Monetary Policy; Game Theory. (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.borsaistanbul.com/datum/imkbdergi/EN/ISE_Review_29.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bor:iserev:v:8:y:2005:i:29:p:39-64

Access Statistics for this article

More articles in Istanbul Stock Exchange Review from Research and Business Development Department, Borsa Istanbul Contact information at EDIRC.
Bibliographic data for series maintained by Ahmet Palu ().