Should Central Bank Respond to Exchange Rates: An Estimated DSGE Model for Turkey
Ozge Filiz Yagcibasi and
Mustafa Ozan Yıldırım
No 10453, EcoMod2017 from EcoMod
Our aim is to examine whether CBRT should respond exchange rate movements. We used a small open economy DSGE model based on Gali(2015). We estimated structural parameters of the model using Bayesian methods over quarterly Turkish data. Our preliminary findings indicate that applying strict inflation targeting is superior to any other alternative interest rate rule. However, a policy maker that values exchange rate stability should also respond to exchange rate fluctuations.
Keywords: Turkey; General equilibrium modeling (CGE); Monetary issues (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ekd:010027:10453
Access Statistics for this paper
More papers in EcoMod2017 from EcoMod Contact information at EDIRC.
Bibliographic data for series maintained by Theresa Leary ().