The evolution of the monetary transmission channels in Turkey: evidence from a TVP-VAR model


ÇATIK A. N. , Akdeniz C.

APPLIED ECONOMICS LETTERS, cilt.26, ss.1072-1079, 2019 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 26 Konu: 13
  • Basım Tarihi: 2019
  • Doi Numarası: 10.1080/13504851.2018.1537468
  • Dergi Adı: APPLIED ECONOMICS LETTERS
  • Sayfa Sayıları: ss.1072-1079

Özet

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.