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Journals / International Journal of Social Sciences and Education Research / 2017 / Cilt: 3 - Sayı: 2

Central Bank transparency and inflation targeting: A policy performance analysis for Turkey

Emine Özge Yurdakurban
Umut Öneş
Pages
467–474
Publication Date
2017-02-01
DOI
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AI Summary & Key Takeaways

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

Also, transparency seems to be a better proxy for the overall institutional change the Turkish economy experienced in the last two decades.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In the wake of recent global financial crisis, growing emphasis has been put on central bank reliability and transparency, especially for the developing countries.
📊
Key Findings & Data:In our paper, we built a macroeconomic model to test the impact of central bank reliability on the inflation targeting performance by the bank.
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Conclusion & Impact:Also, transparency seems to be a better proxy for the overall institutional change the Turkish economy experienced in the last two decades.
🔬Design:Modeling & Simulation
📍Scope:2013 Verileri
⚙️Variables:inflation targeting · central bank transparency · central bank independence

Abstract

In the wake of recent global financial crisis, growing emphasis has been put on central bank reliability and transparency, especially for the developing countries. In our paper, we built a macroeconomic model to test the impact of central bank reliability on the inflation targeting performance by the bank. To this end, we utilized the indexes developed by Cukierman et.al.(1993); and Dinçer and Eigenberg (2013) to calculate a measure of Turkish Central Bank reliability for the past two decades, and ran a multi-equation time series regression to analyze the effect of institutional independence and transparency on inflation targeting performance, while controlling for other macroeconomic indicators that impact inflation. We found that higher degrees of perceived transparency of the central bank has a positive effect on the inflation targeting performance. Also, transparency seems to be a better proxy for the overall institutional change the Turkish economy experienced in the last two decades.

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Cite This Article

Yurdakurban, E. Ö., Öneş, U. (2017). Central Bank transparency and inflation targeting: A policy performance analysis for Turkey. International Journal of Social Sciences and Education Research, Cilt: 3 - Sayı: 2, 467–474. https://ajindex.com/articles/414740

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References (8)

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