Cover IMF Working Papers
Buy Book in Print
Exchange Rate Pass-Through in Turkey
Author:
Mr. Marco Rossi
Search for other papers by Mr. Marco Rossi in
Current site
Google Scholar Close
and
Mr. Daniel Leigh
Search for other papers by Mr. Daniel Leigh in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2002: Issue 204
Language:
English
Publication Date:
01 Nov 2002
DOI:
https://doi.org/10.5089/9781451874518.001
ISBN:
9781451874518
ISSN:
1018-5941
Pages:
18
Keywords:
WP; price; pass-through; pass-through coefficient; exchange rate shock; Exchange rate pass-through; inflation; inflation targeting; distribution chain; VAR; Turkey; WPI inflation; impulse response; exchange rate movement; Exchange rates; Consumer prices; Wholesale price indexes; Consumer price indexes; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (482.2 KB) Download Epub
In light of the strong correlation between exchange rate movements and domestic prices in Turkey, it is important to assess the impact of the exchange rate on domestic prices, in particular as Turkey moves to an inflation targeting regime. This paper uses a recursive vector autoregression model to investigate the impact of exchange rate movements on prices in Turkey. We find that (i) the impact of the exchange rate on prices is over after about a year, but is mostly felt in the first four months, (ii) the pass-through to wholesale prices is more pronounced compared to the pass-through to consumer prices, and (iii) the estimated pass-through is complete in a shorter time and is larger than that estimated for other key emerging market countries.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund