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Effects of USD-Euro parity on a small open economy: evidence from Turkey

Hakan Berument () and Mustafa Yücel

Applied Economics, 2008, vol. 40, issue 16, 2165-2174

Abstract: This study assesses the effect of USD-Euro parity on a small open economy where exports are predominantly denominated in Euros and imports are denominated in USD. Empirical evidence from Turkey suggests that a positive change in the USD value of the Euro appreciates the local currency, decreases inflation and increases output.

Date: 2008
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DOI: 10.1080/00036840600949322

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