The choice of monetary policy tool(s) and relative price variability: evidence from Turkey
Author
Berument, Hakan
Sahin, A.
Saracoglu, B.
Date
2009Source Title
Journal of Applied Sciences
Print ISSN
1812-5654
Electronic ISSN
1812-5662
Publisher
A N S I Network
Volume
9
Issue
12
Pages
2238 - 2246
Language
English
Type
ArticleItem Usage Stats
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Abstract
The aim of this study is to assess any regularity relative price dispersion for the effect of monetary policy tool selection. Central banks use tools such as interbank rate and exchange rate when pursuing their (monetary) policies. The selected tools affect economic variables differently. By using Turkish monthly data for the 1988:2-2008:2 period, this study suggests that pure policies (such as interbank rate only or exchange rate only) increase relative price variability more than mixed policies, where the monetary authorities use the above tools simultaneously. © 2009 Asian Network for Scientific Information.
Keywords
Monetary policy tool(s)Relative price variability
Central bank
Economic variables
Exchange rates
Monetary policies
Relative prices
Turkishs
Costs
Tools