Politique monétaire sous contrainte: le cas de la crise turque de 2000/2001

Ayse Ertugrul, Jérôme Héricourt and Julien Reynaud

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: This article suggests a new type of reaction function fitting monetary policymaker's behaviour when constrained by a fixed exchange rate. Firstly, it incorporates new target variables, which are different from the ones commonly observed by central banks in a flexible exchange rate environment. Secondly, its time frequency is shortened in order to catch the repeated and discretionary central bank interventions for maintaining exchange rate fixity. Weekly data are therefore used for the empirical application of our formulation on Turkey between January 1997 and August 2002. The econometric analysis shows that the exchange rate constraint diverted Turkish monetary Authorities' interventions toward external variables, training unsustainable internal disequilibria

Keywords: Exchange rate crisis; monetary policy; exchange rate-based stabilization policy; Turkey (search for similar items in EconPapers)
JEL-codes: E42 E52 F31 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2004-11
References: Add references at CitEc
Citations:

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/Bla04103.pdf (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:mse:wpsorb:bla04103

Access Statistics for this paper

More papers in Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1) Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().