Fiscal Imbalances, Capital Inflows, and the Real Exchange Rate : The Case of Turkey

E. Murat. Ucer, Pierre-Richard. Agénor, C. John. McDermott, E. Murat. Ucer

ISBN 1451841590, DOI 10.5089/9781451841596.001

utgivning

Washington, D.C. : International Monetary Fund, 1997

1 online resource (31 p.)

Seriemedlemskap

IMF Working Papers; Working Paper · ISSN 1018-5941 · IMF Working Papers; Working Paper ; No. 97/1

E. Murat Ucer

Onlineresurs

Digital resurs · 3 bibliotek

Finns online:

IMF Book Store

kategori

Övernationell (t.ex. EU), Internationell, Ej skönlitteratur

ämne

Capital Flows, Capital Inflows, Exchange Rate, Foreign Exchange, Real Exchange Rate, Turkey

Annat bärarformat

Fiscal Imbalances, Capital Inflows, and the Real Exchange Rate : The Case of Turkey · ISBN 9781451841596 (Print Version:)

Fler detaljer Referera

Sammanfattning

This paper examines the links between fiscal policy, capital inflows, and the real exchange rate in Turkey since the late 1980s. After an overview of recent macroeconomic developments in Turkey, a vector autoregression model is estimated linking government spending, interest rate differentials, capital inflows, and the temporary component of the real exchange rate. Positive shocks to government spending and capital inflows lead to an appreciation of the temporary component of the real exchange rate, whereas positive shocks to the uncovered interest rate differential lead to a capital inflow and an appreciation of the temporary component of the real exchange rate. The findings highlight the role of fiscal adjustment in restoring macroeconomic stability.