Learning Process and Asymmetry In Inflation Targeting Regime: Markov Switching Approach
Küçük Resim Yok
Tarih
2013
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Eskisehir Osmangazi Univ, Fac Education
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
The Central Bank of Republic of Turkey (CBRT) practiced implicit inflation targeting strategy between years 2002 and 2005. The CBRT has started to practice explicit inflation targeting by the beginning of 2006. In this context, the bank announces the inflation target for each year and identifies the disinflation path followed by the CBRT. In this study, we analyze the behavior of the CBRT between years 2002 and 2011 in the context of King's (1997) model which includes forward looking expectations into monetary policy reaction functions. We employ Markov Switching Vector Autoregregression (MS-VAR) approach in order to investigate whether the CBRT has asymmetric behaviors. Results imply that the CBRT plays active or inactive role in the economy due to economic conditions. So, besides inflation targeting strategy, the bank practices monetary policy which supports the economic growth.
Açıklama
Anahtar Kelimeler
Inflation Targeting, Expectatiton, Markov Switching VAR
Kaynak
Eskisehir Osmangazi Universitesi Iibf Dergisi-Eskisehir Osmangazi University Journal of Economics and Administrative Sciences
WoS Q Değeri
N/A
Scopus Q Değeri
Cilt
8
Sayı
1
