Inflation Targeting in Turkey: A Story of Success?

Ergun Ermisoglu

Journal of BRSA Banking and Financial Markets, 2013, vol. 7, issue 1, 31-58

Abstract: In this study, Turkey’s pre- and post-inflation targeting periods are compared by means of inflation performance in order to analyze whether inflation targeting is successful or not. Firstly by autoregressive time series models it is observed that, in addition to level and volatility of inflation, inflation persistence also decreased during this period and the decrease in these indicators are not resulted from a decrease in inflationary shocks. After then, it is showed that not only level and volatility of inflation expectations but also sensitivity of inflation expectations to realized inflations decreased during the inflation targeting period. These findings lead to the conclusion that inflation targeting has positively contributed to the inflation performance in Turkey.

Keywords: Inflation Targeting; Inflation Volatility; Inflation Persistence; Inflation Expectations; Turkey (search for similar items in EconPapers)
JEL-codes: E31 E52 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.bddk.org.tr/Content/docs/bddkDergiTr/dergi_0013_04.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:bdd:journl:v:7:y:2013:i:1:p:31-58

Access Statistics for this article

More articles in Journal of BRSA Banking and Financial Markets from Banking Regulation and Supervision Agency Contact information at EDIRC.
Bibliographic data for series maintained by Sumeyye Azize CENGIZ ().