Currency substitution in Turkey

dc.citation.epage518en_US
dc.citation.issueNumber5en_US
dc.citation.spage509en_US
dc.citation.volumeNumber26en_US
dc.contributor.authorSelçuk, Faruken_US
dc.date.accessioned2016-02-08T10:53:18Z
dc.date.available2016-02-08T10:53:18Z
dc.date.issued1994en_US
dc.departmentDepartment of Economicsen_US
dc.description.abstractAlthough currency substitution is a widely observed phenomenon in both developed and developing countries, most of the studies on currency substitution in small open economies have focused on high inflation South American countries. This paper extends the previous analysis to a newly industrializing, high-inflation economy, namely Turkey. A vector autoregression model has been estimated employing the certain policy variables to investigate the dynamics of currency substitution in the economy. Dynamic impulse responses show that the residents have a preference for substituting foreign currencies for domestic currency because of real-exchange-rate depreciations. The results suggest that to stop or to reverse the on-going currency-substitution process a policy aiming to increase the expected real return on domestic assets should be adopted.en_US
dc.identifier.doi10.1080/00036849400000019en_US
dc.identifier.issn0003-6846
dc.identifier.urihttp://hdl.handle.net/11693/25982
dc.language.isoEnglishen_US
dc.publisherChapman & Hallen_US
dc.relation.isversionofhttp://dx.doi.org/10.1080/00036849400000019en_US
dc.source.titleApplied Economicsen_US
dc.titleCurrency substitution in Turkeyen_US
dc.typeArticleen_US
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