Browsing by Subject "Real Exchange Rate"
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Item Open Access The effect of real exchange rate on unemployment in Turkey(Bilkent University, 2007) Kılıçaslan, NilayThis thesis is intended to analyze the influence of real exchange rate on total and urban unemployment in Turkish economy over 1988 – 2006 periods by using the original work of Frenkel (2004) for Turkey. In addition to this analysis, an alternative model is suggested to overcome some limitations of Frenkel (2004). In this thesis, three channels of influence, namely macroeconomic channel, development channel and labor intensity channel, are taken into account in the search of unemployment’s response to changes in real exchange rate. The results for both analysis show that real exchange rate influences unemployment positively through labor intensity channel for both total and urban unemployment in Turkey. Moreover, suggested alternative model achieves to quantify the seperate effects of the influence channels which was not achieved in Frenkel (2004) due to the limitations of the model.Item Open Access A study about the monetary policy rule of the Central Bank of the Republic of Turkey in the implicit inflation targeting framework(Bilkent University, 2006) Kaya, Şerife DemetThe gist of the study presented in this thesis is to provide an answer mainly to two questions: First; whether in the last four years the Central Bank of the Republic of Turkey (CBRT or Central Bank) has followed a monetary policy rule consistent with its commitments about price stability objectives, implicit inflation targeting regime and floating exchange rate. Second one is if it has done to what extend this rule has resembled the original Taylor rule. In the study, to investigate the answer to these questions a backward-looking model for a monetary policy rule is described and is subjected to an econometric estimation process. It yields significant results for the interval between 2001 and 2005. In a summary, the findings support that while after 2001 the rate of inflation has continued to be a dominant indicator to which the CBRT reacted consistent with its commitments, coming to the current years the real exchange rate (RER) movements and current account deficits have gained an increasing significance in monetary policy rule. Hence, the thesis argues that instead of being tied to a simple Taylor rule, the CBRT might have adopted a differentiated policy rule where it has concerned RER and current account deficit beside the rate of inflation.