The evolution of the monetary transmission channels in Turkey: evidence from a TVP-VAR model
Articles > Article · 2018
Authors: Abdurrahman Nazif ÇATIK, Coskun Akdeniz
Applied Economics Letters, Journal Indexed in SCI Expanded, International, WoS, 2018, vol 26, pp 1072-1079
DOI: 10.1080/13504851.2018.1537468
Summary
This article investigates the evolution of the monetary transmission mechanisms in Turkey for the period from January 1986 to December 2016. To this aim, the impacts of monetary variables on the prices and economic activity are investigated with a time-varying vector autoregressive model based on. The evidences from the time-varying responses indicate that the adoption of inflation targeting policy has markedly affected the functioning of transmission channels. The results also suggest that local and global financial crises may magnify the impact of monetary policy shocks on the overall economy.