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AN INTEGRATED ANALYSIS OF TURKISH INFLATION †
Author(s) -
Metin Kivilcim
Publication year - 1995
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/j.1468-0084.1995.tb00037.x
Subject(s) - turkish , inflation (cosmology) , economics , library science , history , classics , philosophy , linguistics , physics , theoretical physics , computer science
The inflation process in Turkey is investigated utilizing the multivariate cointegration model that is based on the joint analysis of long-run and short-run behavior. Excess demand in each sector--monetary, government, international and labor--as measured by the deviation from the long-run equilibrium is allowed to potentially effect the inflation rate. Excess demand in the government sector is found to be the main determinant of the Turkish inflation rate. Thus, a rate policy implication is that inflation could be reduced rapidly by eliminating the fiscal deficit. Copyright 1995 by Blackwell Publishing Ltd