Determinants of Turkish Inflation

The main purpose in this paper is to investigate the determinants of inflationary process in Turkish economy. For this purpose, based on some potential causes of inflation, an empirical model is contructed upon emphasizing the roles of various factors on inflationary process. The results obtained support the view of cost-push inflation led by exchange rate depreciations, wage indexation mechanism, real interest structure and public sector pricing behaviour which is considered some part of wholesale prices, rather than the demand-pull monetary factors. Some other factors such as the course of real effective exchange rate have been found indicating a relieving effect on the cost pressure settled in domestic economy as well. Supporting these arguments, we find that the smaller the growth performance of the economy given the cost-pressure through exchange-rate pass-through effects, wage indexation mechanism and the real interest structure be imposed, the larger would be the inflation structure. These all might also be given as evidence to that the cost-push rather than demand-pull factors would affect the course of Turkish business cycles.Inflation, Turkish Economy, Cost-Push Pressure

An Analysis Of Central Bank Interventions: Evidence From Turkey

This paper investigates the characteristics of the foreign exchange operations of the CBRT during the period following the Turkish economic crisis in February 2001. Using time series based econometric models, we estimate the parameters of the FOREX market, along with the degree of effectiveness of the interventions of the monetary authority and the inflation targeting framework it employs. The results indicate that the CBRT interventions are inefficient and are mainly influenced by the uncertainties inherent in the economic environment, and cannot decrease the volatility of the exchange markets

Usefulness Of Derivative Instruments In Emerging Markets: Turkish Experience

This article presents an overview of derivative markets, definitions of derivative investment instruments, development of global derivative markets and the applicability of derivative markets in Turkey, given their economic value added to the Turkish economy. Readers will acquire insight into investing in various investment instruments and hedging against risk. Turkish derivative markets will be described, supportive statistical data will be presented, and readers will be introduced to the development and current status of these derivative markets in the Turkish emerging market. Finally, the contribution of derivative instruments and derivative markets to the Turkish economy will be discussed

European Regional Integration and its Partnership with Türkiye: An Assessment of the Specific Customs Union

International economic integrations, especially after the end of World War II, result from the long-term goals of establishing political unity based on countries' orientation towards their common economic interests. Customs unions, in which states abolish tariffs among themselves and apply common tariffs to third countries, are the next advanced stage of international integration after free trade zones. While customs unions eliminate tariffs and related taxes in trade within their jurisdiction, they also establish a common external tariff. This entails some asymmetrical disadvantages for the countries within the Union. A new step by Türkiye in its efforts to integrate with the West was its application to join the EEC in 1959. The Customs Union, defined by the Ankara Agreement signed in 1963, came into effect in 1996 as a result of the agreement made at the meeting of the Association Council of 6 March 1995 adopted "Customs Union Decision". The aim of this study is to examine the bilateral trade impact of the Customs Union between Türkiye and the EU. H1: Which fields should be included in the customs union between Türkiye and the EU? H2: How will the inclusion of trade in digital goods and services in the Customs Union affect EU-Türkiye trade? The results from the analysis covering the years of 1996-2021 showed that the Customs Union has had a positive but limited effect for the trade between EU-Türkiye. The customs union needs to be updated taking into account public procurement, agriculture and digital services

Information Content Of Exchange Rate Volatility: Turkish Experience

This study constructs an empirical model of the volatility of the TL/US$ exchange rate for the Turkish economy during the post-2001 crisis period ending on August 2006. Employing the Exponential GARCH (EGARCH) estimation methodology of econometrics, we find that the volatility of a given shock to the exchange rate is highly persistent and the successive forecasts of the conditional variance converge to the steady state quite slowly. In addition, the conditional variance of the exchange rate reacts differently to a given negative shock than to a positive shock with equal magnitude. The plot of the News Impact Curve indicates that a foreign investor would face a higher uncertainty when there is an unanticipated increase in the exchange rate when compared to an unanticipated decrease

Stability Of Money Multipliers: Evidence From Turkey

This paper investigates whether the money multiplier process in the Turkish economy is stable and can be forecasted. Research results show that the processes which convert the base money supply into the final monetary aggregates are unstable and decrease the effectiveness of monetary policies pursued by the CBRT. In addition, the sub-components of the money multiplier do not support a stable money multiplier process, indicating that traditional monetarist prescriptions for the conduct of economic policy are not appropriate for the Turkish economy.&nbsp

Ligand-Specific Dynamics of the Androgen Receptor at Its Response Element in Living Cells

Androgens have key roles in normal physiology and in male sexual differentiation as well as in pathological conditions such as prostate cancer. Androgens act through the androgen receptor (AR), which is a ligand-modulated transcription factor. Antiandrogens block AR function and are widely used in disease states, but little is known about their mechanism of action in vivo. Here, we describe a rapid differential interaction of AR with target genomic sites in living cells in the presence of agonists which coincides with the recruitment of BRM ATPase complex and chromatin remodeling, resulting in transcriptional activation. In contrast, the interaction of antagonist-bound or mutant AR with its target was found to be kinetically different: it was dramatically faster, occurred without chromatin remodeling, and resulted in the lack of transcriptional inhibition. Fluorescent resonance energy transfer analysis of wild-type AR and a transcriptionally compromised mutant at the hormone response element showed that intramolecular interactions between the N and C termini of AR play a key functional role in vivo compared to intermolecular interactions between two neighboring ARs. These data provide a kinetic and mechanistic basis for regulation of gene expression by androgens and antiandrogens in living cells