Reaction of Monetary policy to Cost-Push Inflation in Turkey:A Leaning against Wind?
Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, cilt.17, sa.1, ss.256-271, 2022 (TRDizin)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 17 Sayı: 1
- Basım Tarihi: 2022
- Doi Numarası: 10.17153/oguiibf.992149
- Dergi Adı: Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi
- Derginin Tarandığı İndeksler: TR DİZİN (ULAKBİM)
- Sayfa Sayıları: ss.256-271
- Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
- Uşak Üniversitesi Adresli: Evet
Özet
In Turkey, monetary policy responds to cost shocks rather than the inflation gap and output gap. To clarify this policy, we estimate the linear and non-linear Taylor rule using the Thresold GMM for 2006:01-2020:07. The linear model estimates that the policy rate responds significantly to the inflation gap and the real effective exchange rate. The non-linear model captures that monetary policy differs in regimes where imported goods and input prices are set as high and low. In a high price regime, monetary policy also reacts to cost-push shocks. The response of monetary policy to the exchange rate implicitly leads to "a leaning against the wind".