The monetary approach to exchange rate determination: an empirical evidence from Turkey
Date
1993
Authors
Editor(s)
Advisor
Taşkın, Fatma
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Print ISSN
Electronic ISSN
Publisher
Bilkent University
Volume
Issue
Pages
Language
English
Type
Journal Title
Journal ISSN
Volume Title
Series
Abstract
In this study, the determination of exchange rates in Turkey is examined by using the monetary approach to exchange rate determination. To provide a theoretical basis, the basic assumptions and the variants of the monetary approach to exchange rate determination are considered. In the empirical test of the monetary approach in Turkey, quarterly data for the observation period 1980-1992 is used. Turkey followed a more liberal exchange rate policy after 1980s. The findings o f this study show that the data does not support the monetary exchange rate determination theory in Turkey. The exchange rate, especially T.L./ U.S. doUar, has a random walk nature and a trace o f unit root