Would "Cold Turkey" Work in Turkey?

Author: Mr. Gaston Gelos, Mr. Alessandro Prati, and Oya Celasun

Volume/Issue: Volume 2003 Issue 049

Publication date: March 2003

ISBN: 9781451846867

$20.00

Add to Cart by clicking price of the language and format you'd like to purchase

Available Languages and Formats


English

Prices in red indicate formats that are not yet available but are forthcoming.

Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Inflation , Economics- Macroeconomics , Public Finance , WP , price , cost , Turkey , variable , Inflation , inertia , price rigidities , stabilization , inflation expectation , disinflation strategy , inflation persistence , disinflation attempt , CPI index , Inflation persistence , Disinflation , Government debt management , Fiscal stance

Also of interest

Private Participation and its Discontents: Insights from Large-Scale Surveys

Public Investment Management Bottlenecks in Low-income Countries

Central Bank Digital Currencies and Financial Stability: Balance Sheet Analys...

Demand for Ethanol Considering Spatially Differentiated Fuel Retailers

Summary

Persistently high inflation rates have led many to believe that inflation in Turkey has become "inertial," posing an obstacle to disinflation. We assess the empirical validity of this argument. We find that the current degree of inflation persistence in Turkey is lower than in Brazil and Uruguay prior to their successful stabilization programs. More significantly, expectations of future inflation are more important than past inflation in shaping the inflation process, providing little evidence of "backward-looking" behavior. Using survey data, we find that inflation expectations, in turn, depend largely on the evolution of fiscal variables.