Anticipated versus Unanticipated Money in Turkey

Rahmi Yamak and Yakup Kucukkale ()

Macroeconomics from University Library of Munich, Germany

Abstract: This Study investigates the validity of the policy ineffectiveness hypothesis of Rational Expectations-Natural Rate Models that only unanticipated policy changes affect real economic variables by using Turkish data over the period of 1980:I-1995:I. The procedure used to test the hypothesis is the autoregressive system introduced by McGee and Stasiak (1985). The empirical results reported in this paper imply that unanticipated monetary policy appears to play an insignificant role in improving real economic activity, and that anticipated monetary policy exerts a significant expansionary impact upon real economic activity. Such evidence for Turkey strongly rejects the policy ineffectiveness hypothesis of Rational Expectations-Natural Rate Models.

Keywords: anticipated; unanticipated; money; growth; sur; shock (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2002-11-18
Note: Type of Document - Acrobat PDF; prepared on PC; to print on A4; pages: 10 ; figures: included. pdf document submitted via ftp
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:0211011

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