Original scientific paper
https://doi.org/10.1080/1331677X.2014.974339
Possible effects of domestic and foreign factors on monetary policy implementation in Turkey: a DSGE-VAR approach
Oguzhan Ozcelebi
orcid.org/0000-0001-8746-9167
Nurtac Yildirim
Aydan Kansu
Abstract
In this paper, we attempt to explore the possible effects of technology, foreign output, price and terms of trade shocks on short-term interest rates in Turkey within a dynamic stochastic general equilibrium-vector autoregressive (DSGE-VAR) framework. In a sense, the primary aim of our paper is to analyse whether the Central Bank of the Republic of Turkey (CBRT) should consider the role of technology, foreign output, price and terms of trade shocks in its monetary policy implementation. Empirical results reveal that the above-mentioned factors have importance for the CBRT, which intends to control economy-wide interest rates in order to maintain price stability.
Keywords
foreign shocks; domestic shocks; short-term interest rates; monetary policy; DSGE-VAR model
Hrčak ID:
171347
URI
Publication date:
20.12.2014.
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