An Analysis of the Relationship between Inflation and Gold Prices: Evidence from Turkey

Authors : Mortaza OJAGHLOU, Rozita SATVATİ

Pages : 79-89

Doi:10.25229/beta.1007869

View : 17 | Download : 7

Publication Date : 2021-12-31

Article Type : Research Paper

Abstract :In this paper, we examine the short and long run dynamic relationship between inflation insert ignore into journalissuearticles values(consumer price index); and the price of gold in Turkey by using monthly data over the period of 2008m10-2021m04. The finding shows there is no long run and cointegration between consumer price index and the price of gold in Turkey. However, the results demonstrate that CPI does Granger cause of gold but gold dose not Granger cause of CPI. Those results are also confirmed by results of short-run of S-model and the long-run properties of the accumulated impulse responses of structural VAR insert ignore into journalissuearticles values(SVAR); model that there is not long run interaction between gold and inflation.
Keywords : Gold Prices, Inflation, Cointegration, Hedge