The Taylor Rule in Estimating the Performance of Inflation Targeting Programs: The Case of Turkey

Erdem Ekrem () and Kayhan Selim ()
Additional contact information
Erdem Ekrem: Erciyes University
Kayhan Selim: Bozok University

Global Economy Journal, 2011, vol. 11, issue 1, 17

Abstract: In this study, we aim to analyse the performance of inflation targeting program named "A Transition Program into a Powerful Economy" in particular since 2002 until the end of 2009 by using Taylor rule in a different way. We divide inflation targeting period in accordance with the governors of the CBRT, Sureyya Serdengecti and Durmus Yilmaz, as a most important element that affects inflation targeting program among other factors.Results imply that Mr. Serdengecti did not follow a pure Taylor rule while Mr. Yilmaz does. In Serdengecti period, the CBRT does not take in account output gap movements and exchange rate while deciding short term interest rate as said in Taylor rule. But the CBRT takes into account outgap movements and exchange rate movements in Yilmaz period, and these variables have important portion in discussing of short term interest rate while it is not so necessary in Serdengecti period.

Keywords: Taylor rule; inflation targeting; Turkey (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2202/1524-5861.1718 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:glecon:v:11:y:2011:i:1:n:7

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/gej/html

DOI: 10.2202/1524-5861.1718

Access Statistics for this article

Global Economy Journal is currently edited by Jannett Highfill

More articles in Global Economy Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().