Monetary policy rules in practice: evidence from Turkey

• DOI: 10.1002/ijfe.219
• Publication Date: 2004-01-23T08:01:06Z
• Authors: Hakan Berument; Hakan Taşçi
• Keywords: Depreciation (economics); Monetary base; Empirical evidence; Foreign-exchange reserves

Abstract This paper estimates a forward‐looking monetary policy reaction function of the Central Bank Republic Turkey by considering period from 1990:01 to 2000:10. When spread between interbank rate and depreciation local currency is taken as tool, empirical evidence suggests that Turkish responds its foreign exchange reserves, output M2 growth not forward, current or lagged inflation. Copyright © 2003 John Wiley & Sons, Ltd.