The Position of Interest Rate Corridor on Monetary Transmission Mechanism

Arikan C., Gorgun S., Yalcin Y.

MALIYE DERGISI, sa.174, ss.1-25, 2018 (ESCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Basım Tarihi: 2018
  • Dergi Adı: MALIYE DERGISI
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.1-25
  • Anahtar Kelimeler: Aysmmetry, Interest Rate Corridor, VAR, Impulse Response
  • Gazi Üniversitesi Adresli: Evet

Özet

The Central Bank of Republic of Turkey's using interest rate corridor, has an asymmetric structure, as a political tool to ensure price and financial stability since 2010 June. This study aims to investigate the effect of interst rate corridor on Turkish for the period 2010-2016 using the Vector Autoregression (VAR) model. According to the results, mostly when a shock given to IRC lower band, reel exchange rate, inflation when a shock given to IRC upper band, money supply reacts statistically and economically significant. Besides, by expanding the band it's been observed that the volume of domestic credit may be reduced and inflation targeting achieved the desired results.