Makale detayı · 2025
The effect of unorthodox monetary policy on inflation in Türkiye: evidence from the synthetic control Method
- Yıl
- 2025
- ISSN
1350-4851- Tür
- article
Veri kaynağı ayrımı
- YÖKSİS YÖKSİS makale kaydı
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Özet
İngilizce (OpenAlex)
This note examines the effect of unorthodox monetary policy on inflation in Türkiye after mid-2018. Using the Synthetic Control Method, we construct a synthetic counterpart to estimate the country’s inflation trajectory had it pursued an orthodox policy framework. We find that inflation could have remained at around 20% under a traditional monetary policy instead of rising until it peaked at 85% in 2023. The evidence reveals that repeated liquidity injections and interest rate cuts – despite rising inflation – led to severe price instability. Our findings highlight the economic risks associated with deviating from orthodox policy frameworks and emphasize the importance of stable, rule-based policies in maintaining price stability.
Konular
- Monetary Policy and Economic Impact
- Islamic Finance and Banking Studies
- Economic, Social, and Health Studies
Birincil konu Monetary Policy and Economic Impact