Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83277
Authors: 
Özlale, Ümit
Ozcan, Kivilcim Metin
Year of Publication: 
2005
Series/Report no.: 
Discussion Paper, Turkish Economic Association 2005/2
Abstract: 
We analyze the implications of the time inconsistency problem for the Turkish monetary policy in the last two decades. After deriving the restrictions that the Barro and Gordon model imposes on a time series model for inflation and output, we show that the time inconsistency problem can explain both the short-run and the long-run behaviour of inflation and output in the Turkish economy. The results also reveal that the Turkish monetary policymakers have put more emphasis on output stability than price stability in the last decade.
Subjects: 
Inflation
Turkish Economy
Time Inconsistency
Kalman Filter
JEL: 
E31
E52
E61
Document Type: 
Working Paper

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