Assessment of Exchange Rate, Interest and Inflation Spiral Based on Neo-Fisher Approach: The Case of Turkey

Authors : Tacinur AKÇA

Pages : 587-607

Doi:10.24988/ije.1060011

View : 121 | Download : 71

Publication Date : 2023-09-05

Article Type : Research Paper

Abstract :In this study, it has been determined whether the Neo-Fisher effect is valid in Turkey, and an examination has been made of the exchange rate, inflation, export, and import effects within the framework of the applied interest policies. In the study, structural break time series analysis was used to examine the consumer price index, nominal interest rates, real effective exchange rate, and export-import linkages in Turkey with monthly data in the period 2003:M1-2021:M9. Lee-Strazicich unit root test was used for multiple structural break unit root test, and the ARDL insert ignore into journalissuearticles values(Autoregressive Distributed Lag Bound Test); method with dummy variables was used for long and short term relationships between series. In the analysis findings, the existence of long-term and short-term cointegration between exports, imports, exchange rates, interest rates and inflation has been determined. Exports and imports are most affected by the exchange rate in both the long and short run. Inflation is affected by both the exchange rate and interest rates in the long and short run. The effect of the exchange rate on inflation is much greater than that of interest rates.
Keywords : Dış Ticaret, Döviz Kuru, Neo Fisher Etkisi, ARDL Yöntemi