Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217288 
Year of Publication: 
2016
Citation: 
[Journal:] Central Bank Review (CBR) [ISSN:] 1303-0701 [Volume:] 16 [Issue:] 2 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2016 [Pages:] 53-57
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper investigates the role of inflation and output uncertainties on monetary policy rules in Turkey for the period 2002 : 01–2014 : 02. In the literature it is suggested that uncertainty is a key element in monetary policy, hence empirical models of monetary policy should regard to uncertainty. In this study, we estimate a forward-looking monetary reaction function of the Central Bank of the Republic of Turkey (CBRT). In addition to inflation and output gap variables, our reaction function also includes both the inflation and output growth uncertainties. Our results suggest that the Central Bank of the Republic of Turkey (CBRT) concerns with mainly price stability and significantly responds to inflation and growth uncertainties.
Subjects: 
Uncertainty
Taylor rule
Monetary policy
Turkey
GMM
JEL: 
E43
E52
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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