Causes and Results of Exchange Rate Intervention Under Inflation Targeting
Under inflation targeting, central banks exchange rate interventions are discussed frequently in the economic literature recently. Effectiveness of intervention in exchange rate under inflation targeting are examined from three perspectives. These are expectations of the actors and the impact on the...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Gaziantep University
2012-06-01
|
| Series: | Gaziantep University Journal of Social Sciences |
| Subjects: | |
| Online Access: | http://dergipark.gov.tr/jss/issue/24240/256973?publisher=gantep |
| _version_ | 1797913283373563904 |
|---|---|
| author | Bora Suslu |
| author_facet | Bora Suslu |
| author_sort | Bora Suslu |
| collection | DOAJ |
| description | Under inflation targeting, central banks exchange rate interventions are discussed frequently in the economic literature recently. Effectiveness of intervention in exchange rate under inflation targeting are examined from three perspectives. These are expectations of the actors and the impact on the variance, reserve accumulation and the cost of sterilization. Since 2003 the Central Bank of Turkey has intervened exchange rate with both direct and indirect methods. The purpose of this study is to examine the results of these three aspects of the CBRT and the foreign exchange interventions. We found that by logit analysis under the inflation targeting of CBRT as a result of the intervention of exchange rate is effect expectations of economic unit and reduce of exchange rate the variance; after thes intervention the variance of exchange rate and cost of sterilization are increased. In this respect, the effectiveness of the intervention of the Central Bank exchange rate market is only reserve accumulation |
| first_indexed | 2024-04-10T12:10:36Z |
| format | Article |
| id | doaj.art-c416c80284c74692a5ddca042309e1f7 |
| institution | Directory Open Access Journal |
| issn | 2149-5459 |
| language | English |
| last_indexed | 2024-04-10T12:10:36Z |
| publishDate | 2012-06-01 |
| publisher | Gaziantep University |
| record_format | Article |
| series | Gaziantep University Journal of Social Sciences |
| spelling | doaj.art-c416c80284c74692a5ddca042309e1f72023-02-15T16:16:03ZengGaziantep UniversityGaziantep University Journal of Social Sciences2149-54592012-06-01111263292136Causes and Results of Exchange Rate Intervention Under Inflation TargetingBora Suslu0?Under inflation targeting, central banks exchange rate interventions are discussed frequently in the economic literature recently. Effectiveness of intervention in exchange rate under inflation targeting are examined from three perspectives. These are expectations of the actors and the impact on the variance, reserve accumulation and the cost of sterilization. Since 2003 the Central Bank of Turkey has intervened exchange rate with both direct and indirect methods. The purpose of this study is to examine the results of these three aspects of the CBRT and the foreign exchange interventions. We found that by logit analysis under the inflation targeting of CBRT as a result of the intervention of exchange rate is effect expectations of economic unit and reduce of exchange rate the variance; after thes intervention the variance of exchange rate and cost of sterilization are increased. In this respect, the effectiveness of the intervention of the Central Bank exchange rate market is only reserve accumulationhttp://dergipark.gov.tr/jss/issue/24240/256973?publisher=gantepKur Müdahalesi Para Politikası Enflasyon HedeflemesiForeign Exchange Intervention Monetary Policy Inflation Targeting |
| spellingShingle | Bora Suslu Causes and Results of Exchange Rate Intervention Under Inflation Targeting Gaziantep University Journal of Social Sciences Kur Müdahalesi Para Politikası Enflasyon Hedeflemesi Foreign Exchange Intervention Monetary Policy Inflation Targeting |
| title | Causes and Results of Exchange Rate Intervention Under Inflation Targeting |
| title_full | Causes and Results of Exchange Rate Intervention Under Inflation Targeting |
| title_fullStr | Causes and Results of Exchange Rate Intervention Under Inflation Targeting |
| title_full_unstemmed | Causes and Results of Exchange Rate Intervention Under Inflation Targeting |
| title_short | Causes and Results of Exchange Rate Intervention Under Inflation Targeting |
| title_sort | causes and results of exchange rate intervention under inflation targeting |
| topic | Kur Müdahalesi Para Politikası Enflasyon Hedeflemesi Foreign Exchange Intervention Monetary Policy Inflation Targeting |
| url | http://dergipark.gov.tr/jss/issue/24240/256973?publisher=gantep |
| work_keys_str_mv | AT borasuslu causesandresultsofexchangerateinterventionunderinflationtargeting |