Interest Rates and Exchange Rate Relationship in BRIC-T Countries

Selim Kayhan (), Tayfur Bayat () and Ahmet Ugur ()
Additional contact information
Selim Kayhan: Bozok University, Faculty of Business and Administration, Department of Economics
Tayfur Bayat: Inonu University, Faculty of Business and Administration, Department of Economics
Ahmet Ugur: Inonu University, Faculty of Business and Administration, Department of Economics

Ege Academic Review, 2013, vol. 13, issue 2, 227-236

Abstract: This study examines the dynamic relationships between the real exchange rate and the real interest rate in the BRIC-T (Brazil, Russia, India, China and Turkey) countries by employing monthly data from the beginning of flexible exchange rate regime to July 2011. For this aim, non-linear causality test and frequency domain causality test approaches are used. According to frequency domain causality test results, interest rate affects exchange rate in only China and this effect exist only in the long run. On the other hand, exchange rate shocks induce changes in interest rate in the shorter period.

Keywords: Interest rate; real exchange rate; BRIC-T; Frequency domain; nonlinear causality (search for similar items in EconPapers)
JEL-codes: E52 E58 F31 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.onlinedergi.com/MakaleDosyalari/51/PDF2013_2_8.pdf (application/pdf)
http://www.onlinedergi.com/eab/arsiv/arsivDetay.aspx?yil=2013&peryot=2 Website of the journal issue (text/html)

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:ege:journl:v:13:y:2013:i:2:p:227-236

Access Statistics for this article

Ege Academic Review is currently edited by Özlem Önder

More articles in Ege Academic Review from Ege University Faculty of Economics and Administrative Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Baris Gök ().