A threshold model for the exchange rate behavior of Turkey

Date

2009

Editor(s)

Advisor

Özlale, Ümit

Supervisor

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Co-Supervisor

Instructor

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Volume

Issue

Pages

Language

English

Type

Journal Title

Journal ISSN

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Abstract

This thesis analyzes the effects of global market conditions and interest rate policy decisions on $/T.L. exchange rate in a nonlinear framework. VIX (Chicago Boards Options Exchange Volatility Index) and unexpected interest rate change are used in the model. It is found that when the exchange rate risk is below a threshold level, exchange rate is sensitive to both unexpected interest rate change and VIX. On the other hand, when the exchange rate risk is high, it becomes insensitive to unexpected interest rate change and significantly more sensitive to VIX

Course

Other identifiers

Book Title

Keywords

VIX, nonlinear, unexpected interest rate change

Degree Discipline

Economics

Degree Level

Master's

Degree Name

MA (Master of Arts)

Citation

Published Version (Please cite this version)