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Journals / TİSK Akademi / 2017 / Cilt: 12 - Sayı: 23

Analaysing The Validity of Gibson Paradox By Nominal Interest Rate And General Price Level

Nominal faiz oranı, fiyat düzeyi, Gibson çelişkisi, eş bütünleşme analizi, ARDL, sınır testi, kritik sınır değerleri

Doç. Dr. Utku ALTINÖZ
Pages
172–185
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

In addition, the long-run relationship has been detected to be one-way from general price level to nominal interest rate

📌 3 Key Takeaways

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Objective & Hypothesis:Price LevelCommonly it is accepted that interest rate is playing an important role for central banks when they struggle with inflation.
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Key Findings & Data:The aim of this study is to examine Gibson paradox, which considers the strong positive correlation between the price level measured by a price index and the long-term nominal interest rate for the Turkish economy and to understand the theoretical thesis about the direction of long-term relationship.
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Conclusion & Impact:In addition, the long-run relationship has been detected to be one-way from general price level to nominal interest rate
🔬Design:Research Article
📍Scope:2015 Verileri
⚙️Variables:Domain Parameters

Abstract

Price LevelCommonly it is accepted that interest rate is playing an important role for central banks when they struggle with inflation. The aim of this study is to examine Gibson paradox, which considers the strong positive correlation between the price level measured by a price index and the long-term nominal interest rate for the Turkish economy and to understand the theoretical thesis about the direction of long-term relationship. So, that consumer price index and three-month interest rate were used over the period 1988:1-2015:4 and ARDL test were applied. As a result of empirical analysis, the validity of Gibson paradox was approved. In addition, the long-run relationship has been detected to be one-way from general price level to nominal interest rate

Özet

Nominal Faiz Oranı-Genel Fiyat Düzeyi İlişkisi İle Türkiye'de Gibson Paradoksunun Geçerliligi AnaliziMerkez bankalarının enflasyonla mücadele sürecinde faiz oranlarının önemli bir rol üstlendikleri, genel kabul görmüş bir gerçekliktir. Bu gerçeklikten hareketle çalışmada uzun dönem nominal faiz oranları ile fiyatlar genel düzeyi arasında güçlü bir ilişki olduğunu savunan Gibson paradoksunun geçerliliği Türkiye ekonomisi içi test edilmektedir. 1988:12015:4 yıllarını kapsayan 3 aylık verilerin kullanıldığı ekonometrik analizde fiyat endeksi faiz oranları kullanılmış ve Sınır testi yardımı ile katsayılar tahmin edilmiştir. Sonuç olarak Türkiye ekonomisinde ilgili dönemler için Gibson paradoksunun geçerli olduğu sonucuna varılmıştır. Ayrıca var olan Gibson paradoksunun fiyatlar genel düzeyinden nominal faiz oranına doğru tek yönlü olduğu anlaşılmıştır.

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Cite This Article

ALTINÖZ, D. D. U. (2017). Analaysing The Validity of Gibson Paradox By Nominal Interest Rate And General Price Level. TİSK Akademi, Cilt: 12 - Sayı: 23, 172–185. https://ajindex.com/articles/364452

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References (5)

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