Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/83254 
Year of Publication: 
2004
Series/Report no.: 
Discussion Paper No. 2004/3
Publisher: 
Turkish Economic Association, Ankara
Abstract: 
This study examines the dynamics and determinants of inflation in the Ottoman Empire during the 1586-1913 period. There might be two main reasons for inflation: fiscal expansion and monetary expansion where the monetary expansion could be generated through the debasement of local currency (Akçe). We used a set of political and structural variables in order to explain the change in the inflation dynamics. In particular, we considered the war years, periods of Ottoman history which show different characteristics (the slow down period, the recession period and the break up period) and the period of constitutional monarchy. Moreover, we tested if the inflation process was the same for each sultan and all of the sultan behaved differently from the rest of their reign during their first year. Accordingly, the empirical evidence reported here suggests that war accelerated inflation as expected and fiscal expansion rather than the debasement of the Akçe was a main reason for inflation. Moreover, the slow down, the recession and the break up periods affected inflation positively; both fiscal expansion and the debasement of the Akçe were seen in these three periods as sources of inflation. In addition, each sultan had different inflationary policies during his period. However, each sultan accelerated inflation in the first year of his reign by the debasement of the Akçe or by fiscal expansion. Last, the constitutional monarch period had a significant positive effect on inflation; however, fiscal expansion rather than the debasement of the Akçe was the source of inflation in this period.
Subjects: 
Inflation
Debasement
Fiscal Expansion and Ottoman Empire
JEL: 
E31
H11
H30
Document Type: 
Working Paper

Files in This Item:
File
Size
822.82 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.