2016
DOI: 10.17261/pressacademia.2016116552
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The dynamics of exchange rate pass-through to domestic prices in Turkey

Abstract: In an environment where countries have trade relations with each other, prices of domestic goods should vary due to trade. Developing countries in particular import raw materials and semi-manufactured goods from other countries in order to carry out the production process. Final goods are imported for household consumption as well. Exchange rate changes naturally affect domestic prices as well. The effect of exchange rate pass-through on inflation for Turkey was investigated with the NARDL method using the dat… Show more

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Cited by 6 publications
(7 citation statements)
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“…The purpose of monetary policies is to keeping exchange rate stability whereas to promote economic growth. It is investigated that there is causality from exchange rate towards economic growth for the nine European countries (KARAMELIKLI & KORKMAZ, 2016). Exchange rates impressively influence cross-border economic business, according to (FRIEDEN, et al 2010).…”
Section: Introductionmentioning
confidence: 99%
“…The purpose of monetary policies is to keeping exchange rate stability whereas to promote economic growth. It is investigated that there is causality from exchange rate towards economic growth for the nine European countries (KARAMELIKLI & KORKMAZ, 2016). Exchange rates impressively influence cross-border economic business, according to (FRIEDEN, et al 2010).…”
Section: Introductionmentioning
confidence: 99%
“…They emphasized that prices are sticky downwards but flexible upwards in the short run, and the business cycle is the primary source of asymmetry in Turkey. Karamelikli and Korkmaz (2016) also investigated the exchange rate pass-through into Turkey's domestic prices by using the NARDL model. They found that the ERPT is asymmetric in the short-run, and both an increase and a decrease in the exchange rate increase the consumer prices.…”
Section: Literaturementioning
confidence: 99%
“…Exchange rate pass-through to domestic prices in Turkey can explain these results. In the theory, there is a positive relationship between real exchange rate and inflation in the long-run (Karamelikli & Korkmaz, 2016). Therefore, changes in real exchange rate could be reflected on domestic prices.…”
Section: The Contents Ofmentioning
confidence: 99%