Foreign Exchange Rate Effect on Household Consumption Tendency: The Turkish Case

Elçin Aykaç Alp and Ali Osman Gürbüz
Additional contact information
Elçin Aykaç Alp: Istanbul Commerce University
Ali Osman Gürbüz: Istanbul Commerce University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2020, vol. 35, issue 114, 263-294

Abstract: In this study, the relationship between the exchange rate and the consumer price index and the effect of the relationship on the price movements of the product groups were examined in Turkey for the period between 2003:01-2019:04. The direction and degree of impact differ in terms of periods. For this reason, both the entire period and the five-year periods are subjected to analysis. The method of analysis as 394 items, 12 commodity groups for the five-years period by calculating correlations with the dollar, euro and currency basket was examined in terms of direction and impact of the relationship is analyzed. For the same periods, the relationship between the exchange rates and the CPI was also analyzed with VAR models. This method helps to determine the direction and the impact of this relationship and also it shows how long the effect lasted.

Keywords: Net Exchange Rate; CPI; exchange rate pass-through (search for similar items in EconPapers)
JEL-codes: C32 E31 F31 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dergipark.org.tr/tr/download/article-file/983939 (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:acc:malfin:v:35:y:2020:i:114:p:263-294

DOI: 10.33203/mfy.694941

Access Statistics for this article

Journal of Finance Letters (Maliye ve Finans Yazıları) is currently edited by Süleyman Kale

More articles in Journal of Finance Letters (Maliye ve Finans Yazıları) from Maliye ve Finans Yazıları Yayıncılık Ltd. Şti.
Bibliographic data for series maintained by Süleyman Kale ().