SavedAdd your journal

Journals / Ege Akademik Bakış Dergisi / 2014 / Cilt: 14 - Sayı: 1

Do Exchange Rates Affect Inflation? Evidence from Emerging Market Economies

Döviz Kurları Enflasyonu Etkiler Mi? Gelişmekte Olan Piyasa Ekonomilerinden Ispat

Baki DEMİREL
Baris ALPASLAN
Emre GÜNEŞER BOZDAĞ
Pages
1–8
Publication Date
2014-02-01
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

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

This paper also studies whether stabilization programs under flexible exchange rate regimes and particularly inflation targeting policy may have eliminated dollarization in the periods 1995-2001 and 20022010

📌 3 Key Takeaways

🎯
Objective & Hypothesis:After the 1980s, chronic inflation in Turkey has shaken confidence in the domestic currency, and thus operating debit-credit transactions through dollars.
📊
Key Findings & Data:The aim of this paper is to analyse the impact of exchange rate pass-through into inflation in both Turkey and emerging market economies that were highly dollarized and shifted to a flexible exchange rate regime, together with inflation targeting policy in an attempt to switch to the advanced economy.
💡
Conclusion & Impact:This paper also studies whether stabilization programs under flexible exchange rate regimes and particularly inflation targeting policy may have eliminated dollarization in the periods 1995-2001 and 20022010
🔬Design:Research Article
📍Scope:2001 Verileri
⚙️Variables:Ters dolarizasyon · enflasyon hedeflemesi politikası · döviz kuru geçiş etkisi

Abstract

After the 1980s, chronic inflation in Turkey has shaken confidence in the domestic currency, and thus operating debit-credit transactions through dollars. The aim of this paper is to analyse the impact of exchange rate pass-through into inflation in both Turkey and emerging market economies that were highly dollarized and shifted to a flexible exchange rate regime, together with inflation targeting policy in an attempt to switch to the advanced economy. This paper also studies whether stabilization programs under flexible exchange rate regimes and particularly inflation targeting policy may have eliminated dollarization in the periods 1995-2001 and 20022010

Özet

Türkiye’de 1980 sonrasında görülen kronik enflasyon ülke parasına olan güvenin azalmasına yol açarak borç alacak ilişkilerinin döviz üzerinden gerçekleşmesine neden olmuştur. Bu çalışmanın amacı güçlü ekonomiye geçiş programı çerçevesinde uygulanan enflasyon hedeflemesi politikası sonucunda geçiş etkisinin, enflasyon üzerinde ne derece belirgin olduğunu saptamaya çalışmaktır. Benzer bir etki, geçmişte dolarizasyon baskısında olan ve daha sonra esnek kur sistemine geçen diğer gelişen piyasa ekonomileri için de incelenecektir. Bu sayede esnek kur sistemi altında uygulanan istikrar politikalarının ve özellikle enflasyon hedeflemesi politikasının dolarizasyon olgusunu azaltıp azaltmadığı anlamaya çalışılacaktır. Sözkonusu çalışma 1995-2001 ve 20022010 olmak üzere iki ayrı dönemi kapsamaktadır

🔖

Cite This Article

DEMİREL, B., ALPASLAN, B., BOZDAĞ, E. G. (2014). Do Exchange Rates Affect Inflation? Evidence from Emerging Market Economies. Ege Akademik Bakış Dergisi, Cilt: 14 - Sayı: 1, 1–8. https://ajindex.com/articles/752020

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (7)

  1. Asia Economic Monitor. (2011) “Managing Com- modity Price Volatility and Inflation in Emerging East Asia” Emerging East Asia-A Regional Economic Update, July 2011.
  2. Baqueiro, A., De León, A.D. ve Torres, A. (2002) “Fear of Floating or Fear of Inflation? The Role of the Exchange Rate Pass-Through” BIS Papers, No:19. Calvo, G.A., Izquierdo, L. ve Mejía, F. (2008) “Systemic Sudden Stops: The Relevance of Balance-Sheet Effects and Financial Integration” IMF Working Paper Series No:14026. Calvo, G. Ve Reinhart, C. (2002) “Fear of Floating” Quarterly Journal of Economics, 117(2):379-408.
  3. Campa, J. ve Goldberg, L. (2006) “Pass Through of Exchange Rates to Consumption Prices: What has Changed and Why?” NBER Working Paper Series, No:12547. Choudhri, E.U. ve Hakura, D.S (2001) “Exchange Rate Pass-Through to Domestic Prices: Does the Inflati- onary Environment Matter?” IMF Working Paper Series, No:01/194. De Gregorio, J. (2012) “Commodity Prices, Mone- tary Policy and Inflation” Prepared for the Conference on Policy Responses to Commodity Price Movements, Organized by the IMF and the Central Bank of Turkey, April. Devereux, M.B., Lane, P.R. ve Xu, J. (2006) “Exc- hange Rates and Monetary Policy in Emerging Market Economies” The Economic Journal, 116:1-42.
  4. Sebastian, E. (2001) “Exchange Rate Regimes, Ca- pital Flows and Crisis Prevention” NBER Working Pa- pers Series, No:8529. Eichengreen, B. ve Hausmann, R. (1999) “Exchange Rates and Financial Fragility” National Bureau of Eco- nomic Research Working Paper Series, No: 7418. Fischer, S. (2001) “Exchange Rate Regimes: Is the Bipolar View Correct?” Journal of Economic Perspectives, 15(2):3-24.
  5. Frankel, J.A., Parsley, D.C. ve Wei, SJ. (2005) “Slow Pass-Through around the World: A New Import for Developing Countries” NBER Working Paper Series, No:11199. Furlong, F. ve Ingenito, R. (1996) “Commodity Prices and Inflation” Frbsf Economic Review, 2:27-47.
  6. Ghosh, A.R. (2006) “Capital Account Crises: Les- sons for Crisis Prevention” Crisis Prevention in Emer- ging Markets International Monetary Fund - Singapore Government High Level Seminar Singapore, July 10-11.
  7. Hahn, E. (2003) “Pass Through of External Shocks to Euro Area Inflation” ECB Working Paper Series, No:243. Honohan, P. ve Anqing, S. (2001) “Deposit Dollari- zation and the Financial Sector in Emerging Economies” World Bank Working Paper Series. Hunt, B. ve Isard, P. (2003) “Some Implications for Monetary Policy of Uncertain Exchange Rate Pass- Through” IMF Working Pap