✦ LIBER ✦

Monetary policy in high inflation open economies: evidence from Israel and Turkey

✍ Scribed by Sushanta K. Mallick; Mohammed Mohsin

Publisher: John Wiley and Sons
Year: 2007
Tongue: English
Weight: 180 KB
Volume: 12
Category: Article
ISSN: 1076-9307
DOI: 10.1002/ijfe.324

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

With quarterly data from Israel and Turkey we estimate generalized impulse response functions to show that inflation has no long‐run real effects on consumption, investment and the current account balance. The findings are robust even after allowing for inflation volatility obtained through GARCH estimates. We develop an inter‐temporal optimizing model of a small open economy with a fixed rate of time preference that supports the empirics. Our model, thus, extends the super‐neutrality results (à la Sidrausky) in an open economy paradigm. Copyright © 2007 John Wiley & Sons, Ltd.

📜 SIMILAR VOLUMES

Monetary policy rules in practice: evide

Monetary policy rules in practice: evidence from Turkey

✍ Hakan Berument; Hakan Taşçi 📂 Article 📅 2004 🏛 John Wiley and Sons 🌐 English ⚖ 82 KB

## Abstract This paper estimates a forward‐looking monetary policy reaction function of the Central Bank of the Republic of Turkey by considering the period from 1990:01 to 2000:10. When the spread between the interbank rate and depreciation rate of the local currency is taken as a policy tool, the

Monetary policy analysis and inflation t

Monetary policy analysis and inflation targeting in a small open economy: a VAR approach*

✍ Tor Jacobson; Per Jansson; Anders Vredin; Anders Warne 📂 Article 📅 2001 🏛 John Wiley and Sons 🌐 English ⚖ 280 KB

## Abstract Empirical monetary policy research has increased in the last decade, possibly because deregulation and explicit monetary targets have made monetary policy issues more interesting. In particular, within the inflation targeting framework it has been argued that inflation forecasts can be