Rationality of inflation expectations in a financially repressed economy

buir.advisorTogan, Subidey
dc.contributor.authorBaşçı, Erdem
dc.departmentDepartment of Economicsen_US
dc.descriptionAnkara : Department of Economics and Institute of Economics and Social Sciences, Bilkent Univ., 1990.en_US
dc.descriptionThesis (Master's) -- Bilkent University, 1990.en_US
dc.descriptionIncludes bibliographical references.en_US
dc.description.abstractThis study attempts to assess the quality of p u b l i c ’s expectations of inflation by investigating the dynamic interactions between money, prices, income and interest rates in Turkey. Four alternative hypotheses on public expectation formation rule are proposed and tested in the context of the same real money balances model. The fact that interest rates were not determined by the market forces in the investigated period provides sufficient volatility in the real interest rates, and hence reduces the confidence bands of the estimates of the interest sensitivity parameter of the real money demand function. The estimation of parameters and tests of hypotheses are carried out on restricted and unrestricted vector-autoregressive representations of the time series of four economic variables, namely growth rates of money, prices, output and interest rates. Out of sample forecasts are also carried out and compared. Most of the results are in favor of the adaptive and less informed expectations hypothesis rather than rational or more informed onesen_US
dc.description.statementofresponsibilityBaşçı, Erdemen_US
dc.format.extent18 leavesen_US
dc.publisherBilkent Universityen_US
dc.subjectRational expectationsen_US
dc.subjectmoney demand function,en_US
dc.subjectv e c t o r - a u t o r e g r e s s i o nen_US
dc.subjects t a t i o n a r i t yen_US
dc.subjectcross-equation r e s t r i c t i o n sen_US
dc.subject.lccHG1206.5 .B37 1990en_US
dc.subject.lcshMonetary policy--Turkey.en_US
dc.subject.lcshInflation (Finance)--Turkey.en_US
dc.titleRationality of inflation expectations in a financially repressed economyen_US
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
661.28 KB
Adobe Portable Document Format
Full printable version