EconPapers    
Economics at your fingertips  
 

The Inflationary Effects of Fiscal Policy in Turkey: Evidence from a SVAR Model

Ayşe Ertuğrul
Additional contact information
Ayşe Ertuğrul: Bahcesehir University

No 252, EY International Congress on Economics II (EYC2015), November 5-6, 2015, Ankara, Turkey from Ekonomik Yaklasim Association

Abstract: The high single-digit inflation in Turkey, as well as in other developing countries is the subject of studies focusing on the role of monetary policy. While low budget deficits and sustainable debt dynamics in post 2001 crisis period in Turkey, whether the fiscal aggregates are expansionary and they play any role in inflation rigidity remain as unanswered and important questions. This study aims to provide evidence on these questions. After analyzing the nature of fiscal policy in Turkey between 2002:Q1-2014:Q4 period, I try to evaluate the impact of fiscal policy shock on macroeconomic variables, with a special focus on inflation. The methodological framework is structural vector autoregressive. Whereas the preliminary results regarding the effect on output are in line with the previous literature for fiscal policy in Turkey, the findings for the effects on inflation differ in respect to fiscal aggregates.

Keywords: Fiscal Policy; Inflation; Nonlinearity; Structural VAR (search for similar items in EconPapers)
JEL-codes: E31 F62 (search for similar items in EconPapers)
Pages: 2 pages
Date: 2015
New Economics Papers: this item is included in nep-ara, nep-cba, nep-cwa and nep-mac
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.ekonomikyaklasim.org/eyc2015/userfiles/downloads/_Paper%20252.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

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:eyd:cp2015:252

Access Statistics for this paper

More papers in EY International Congress on Economics II (EYC2015), November 5-6, 2015, Ankara, Turkey from Ekonomik Yaklasim Association
Bibliographic data for series maintained by Ozan Eruygur ().

 
Page updated 2022-03-27
Handle: RePEc:eyd:cp2015:252