The effects of exchange rate risk on economic performance: the Turkish experience
Author
Berument, Hakan
Dincer, N. N.
Date
2004Source Title
Applied Economics
Print ISSN
0003-6846
Electronic ISSN
1466-4283
Publisher
Routledge
Volume
36
Issue
21
Pages
2429 - 2441
Language
English
Type
ArticleItem Usage Stats
222
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219
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Abstract
This study examines the effects of real exchange rate risk on the economic performance for an emerging, small open economy: Turkey. When the ratios of the total foreign exchange liabilities of the Central Bank of the Republic of Turkey (CBRT) to: (1) total reserves; (2) the CBRT's reserves; and (3) the CBRT's total Turkish lira liabilities are taken proxy of exchange rate risk, the empirical evidence suggests that the increase in exchange rate risk causes a depreciation in the real exchange rate, an increase in prices and a decrease in output. © 2004 Taylor and Francis Ltd.
Keywords
Currency marketExchange rate
National economy
Performance assessment
Real exchange rate
Risk factor
Eastern Hemisphere
Eurasia
Turkey
World