Does Time Inconsistency Problem Apply For Turkish Monetary Policy?

Arbeitspapier

We analyze the implications of the time inconsistency problem for the Turkish monetary policy in the last two decades. After deriving the restrictions that the Barro and Gordon model imposes on a time series model for inflation and output, we show that the time inconsistency problem can explain both the short-run and the long-run behaviour of inflation and output in the Turkish economy. The results also reveal that the Turkish monetary policymakers have put more emphasis on output stability than price stability in the last decade.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 2005/2

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Monetary Policy ; Policy Objectives; Policy Designs and Consistency; Policy Coordination
• Subject: Inflation ; Turkish Economy ; Time Inconsistency ; Kalman Filter

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Özlale, Ümit ; Ozcan, Kivilcim Metin
• Event: Veröffentlichung
• (who): Turkish Economic Association
• (where): Ankara
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/83277
• Last update: 10.03.2025, 11:43 AM CET