Effectiveness of monetary policy: evidence from Turkey

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dc.authoridYucel, Eray/0000-0002-1038-4357|Avci, Sureyya Burcu/0000-0001-8056-8509
dc.authorwosidYucel, Eray/AAG-5262-2019
dc.authorwosidAvci, Sureyya Burcu/ABA-4135-2020
dc.contributor.authorAvci, S. Burcu
dc.contributor.authorYucel, Eray
dc.date.accessioned2024-07-18T20:42:25Z
dc.date.available2024-07-18T20:42:25Z
dc.date.issued2017
dc.departmentİstanbul Bilgi Üniversitesien_US
dc.description.abstractAn effective monetary policy framework is often viewed as a pre-condition for well-functioning financial markets. Yet measuring monetary policy effectiveness is not straightforward; it requires empirical work to understand the impact of financial infrastructure, competitiveness of financial markets, and current economic conditions. In particular, monetary policy effectiveness depends on the extent to which the chosen interest rate affects all other financial prices-including the entire term structure of interest rates, credit rates, exchange rates, and asset prices. This paper examines the effectiveness of monetary policy in Turkey by focusing on interest rate pass-through outcomes by way of an interacted vector autoregressive (IVAR) approach. The results suggest that policy-led rate changes are fully transmitted to deposit and credit rates within eight months. Competition in the banking sector (as well as that sector's liquidity and profitability), dollarization, exchange rate flexibility, inflation, and term structure all have a positive effect on interest rate pass-through; whereas regulatory quality, GDP growth, monetary growth, industrial growth, and capital inflows have a negative effect. Using various tests, we find that the effect of financial development and macroeconomic variables on interest rate pass-through is neither robust nor time-invariant.en_US
dc.identifier.doi10.1007/s40822-017-0068-y
dc.identifier.endpage213en_US
dc.identifier.issn1309-422X
dc.identifier.issn2147-429X
dc.identifier.issue2en_US
dc.identifier.scopus2-s2.0-85028310934en_US
dc.identifier.scopusqualityQ1en_US
dc.identifier.startpage179en_US
dc.identifier.urihttps://doi.org/10.1007/s40822-017-0068-y
dc.identifier.urihttps://hdl.handle.net/11411/7274
dc.identifier.volume7en_US
dc.identifier.wosWOS:000411147600002en_US
dc.identifier.wosqualityN/Aen_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherSpringer Heidelbergen_US
dc.relation.ispartofEurasian Economic Reviewen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectInterest Rate Pass-Throughen_US
dc.subjectDeposit And Credit Channelsen_US
dc.subjectPolicy And Market Ratesen_US
dc.subjectBanking Sectoren_US
dc.subjectInteracted Vector Autoregressive Methodologyen_US
dc.subjectRate Pass-Throughen_US
dc.subjectTransmissionen_US
dc.titleEffectiveness of monetary policy: evidence from Turkey
dc.typeArticle

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