THE ROLE OF EXCHANGE RATES IN MONETARY POLICY RULE: THE CASE OF INFLATION TARGETING COUNTRIES

Mahir BİNİCİ

Makale detayları

THE ROLE OF EXCHANGE RATES IN MONETARY POLICY RULE: THE CASE OF INFLATION TARGETING COUNTRIES

Yazarlar:

Mahir BİNİCİ

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Economics and Finance Studies 2011 Vol.3 Issue 2, pp.181-192

Belge Tipi:

Makale

Yayın Tarihi:

11/2011

Belge Dili:

Türkçe

Document ID (Org No.):

2000811206

Sıklık:

İki Yıllık

eISSN:

1309-8055

Özet:

 

This paper examines two main issues for the case of inflation targeting countries.
 The first is to investigate whether monetary authorities react to the exchange rate
 movements, in addition to inflation and output gap, as in simple monetary policy
 rule. The second is to investigate whether reactions to the exchange rates have any
 implications for the inflation targeting performance. The main result of the
 analysis indicates that some inflation targeting countries react to the exchange rate
 movements. The policy to stabilize the exchange rate movements helps achieve
 the inflation target; however, this is not robust across different specifications. In
 contrast, the real exchange rate variability worsens the inflation targeting
 performance. The other main finding from the panel data model is that the
 deviation of the inflation from the target rate exhibits a high and systematic
 persistence. Additionally, central banks with constant inflation targeting are more
 successful controlling inflation in the target path compared to banks with a nonconstant
 inflation target. Finally, restriction on capital controls helps the inflation
 targeting performance.

Makale detayları

THE ROLE OF EXCHANGE RATES IN MONETARY POLICY RULE: THE CASE OF INFLATION TARGETING COUNTRIES

Yazarlar: Mahir BİNİCİ

Yayıncı: Sosyal Bilimler Araştırmaları Derneği

Dergi: International Journal of Economics and Finance Studies 2011 Vol.3 Issue 2, pp.181-192

Belge Tipi: Makale

Yayın Tarihi: 11/2011

Belge Dili: Türkçe

Document ID (Org No.): 2000811206

Sıklık: İki Yıllık

eISSN: 1309-8055

Sayı

Yazarlar:

Mahir BİNİCİ

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Economics and Finance Studies 2011 Vol.3 Issue 2, pp.181-192

Belge Tipi:

Makale

Yayın Tarihi:

11/2011

Belge Dili:

Türkçe

Document ID (Org No.):

2000811206

Sıklık:

İki Yıllık

eISSN:

1309-8055