The effects of exchange rate risk on economic performance: the Turkish experience

Date
2004
Advisor
Instructor
Source Title
Applied Economics
Print ISSN
0003-6846
Electronic ISSN
1466-4283
Publisher
Routledge
Volume
36
Issue
21
Pages
2429 - 2441
Language
English
Type
Article
Journal Title
Journal ISSN
Volume Title
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.

Course
Other identifiers
Book Title
Keywords
Currency market, Exchange rate, National economy, Performance assessment, Real exchange rate, Risk factor, Eastern Hemisphere, Eurasia, Turkey, World
Citation
Published Version (Please cite this version)