Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
982535 | Procedia Economics and Finance | 2016 | 8 Pages |
Abstract
After the crises in 2001 inflation targeting regime has been adopted and short-term interest rates have been used as the main monetary policy tool in Turkey. In addition, Central Bank of the Republic of Turkey (CBRT) utilizes short-term interest rates against the sudden rises in dollar rate. In this context, we aim to determine the efficient level of short-term interest rates on dollar rate. Accordingly, using monthly data for the period of 2003:02 – 2015:08, we find no evidence that higher interest rates cause to a weakening of exchange rate, by the frequency domain Granger causality test.
Related Topics
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Authors
Taha Bahadır Saraç, Kadir Karagöz,