Show simple item record

dc.contributor.advisorYeldan, Erinç
dc.contributor.authorYağcıbaşı, Özge Filiz
dc.date.accessioned2016-01-08T18:24:33Z
dc.date.available2016-01-08T18:24:33Z
dc.date.issued2012
dc.identifier.urihttp://hdl.handle.net/11693/15781
dc.descriptionAnkara : The Department of Economics, İhsan Doğramacı Bilkent University, 2012.en_US
dc.descriptionThesis (Master's) -- Bilkent University, 2012.en_US
dc.descriptionIncludes bibliographical references leaves 56-58.en_US
dc.description.abstractAside from its devastating effects on global economy, global financial crisis has also shaken the mainstream economic theory. After the crisis, policies implemented by governments and Central Banks, issues of financial stability, impacts of international capital flows and exchange rates have become the center of macroeconomic research. This thesis examines the impact of global financial crisis on the IT framework. The aim is to discuss the imperfections and defections in the framework and propose extensions. In this context, a small open economy DSGE model, calibrated for Turkey during 2003- 2012 is proposed. The base model is extended to capture dynamics of Turkish economy better. Since, trade and credit channels of transmission mechanism of crisis are the most powerful channels for the contagion of the crisis to Turkish economy, inclusion of net international investment position (to the problems of households and entrepreneurs) and imported capital good (to the production function) strengthen the explanatory power of the model considerably. Moreover, to address whether allowing Central Bank to respond exchange rates yields gains in terms of output and inflation stabilization, an augmented Taylor rule which incorporates exchange rates is constructed. Responses under the benchmark model where Central Bank uses a traditional Taylor rule and an augmented Taylor rule are obtained. To provide a reference in interpreting the findings of the model, a Vector Auto Regression analysis is performed with interest rates, inflation, output level and exchange rates as endogenous variables. Finally, results of the model experiments and VAR are compared. The results indicate that, the model with the augmented Taylor rule can help to smooth business cycle fluctuations more effectively than conventional Taylor rule but, in some cases, Central Bank may encounter with a tradeoff between output gap and inflation.en_US
dc.description.statementofresponsibilityYağcıbaşı, Özge Filizen_US
dc.format.extentxi, 66 leavesen_US
dc.language.isoEnglishen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectGlobal Financial Crisisen_US
dc.subjectInflation Targetingen_US
dc.subjectTaylor Ruleen_US
dc.subjectInternational Capital Flowsen_US
dc.subjectExchange Ratesen_US
dc.subject.lccHB3722 .Y34 2012en_US
dc.subject.lcshFinancial crises.en_US
dc.subject.lcshFinancial crises--Turkey.en_US
dc.subject.lcshInflation (Finance)en_US
dc.subject.lcshInflation (Finance)--Turkey.en_US
dc.titleImplications of global financial crisis on inflation targetting frameworken_US
dc.typeThesisen_US
dc.departmentDepartment of Economicsen_US
dc.publisherBilkent Universityen_US
dc.description.degreeM.S.en_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record