Identfying the liquidity Effects of Monetary Policy Shocks for a small Open Economy: Turkey
Open Economies Review
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Berument, M. H., Togay, S., & Sahin, A. (2011). Identifying the liquidity effects of monetary policy shocks for a small open economy: Turkey. Open Economies Review, 22(4), 649-667.
Please cite this item using this persistent URLhttp://hdl.handle.net/11693/12261
This paper proposes a new liquidity measure for a small open economy. The new measure includes the net liquidity provided to the system by a central bank after accounting for the central bank's involvement in the foreign exchange market. Empirical evidence gathered from Turkey suggests that a positive innovation in liquidity increases output temporarily and that its effect on prices, exchange rate and money are permanently higher.