An investigation upon the cyclical relationship between inflation and real income in the Turkish economy

Abstract

In our paper, the cyclical properties between real income and inflation in the Turkish economy have been tried to be examined by use of some contemporaneous filtering techniques. Our findings considering 1987Q1-2007Q2 investigation period reveal that the cyclical real income component has a strong and positive autocorrelation that reflects the persistence in business cycle fluctuations, and that real output has a high degree of volatility, and also that there exists a counter-cyclical relationship between inflation and real income. All in all, we infer that the cyclical-based fluctuations observed on the real income in the Turkish economy might have been occured due to some supply-based shocks that the economy have been experienced.İş-Çevrimleri ; Filtreleme ; Reel Gelir ; Enflasyon ; Ters-Çevrimsel Fiyatlar ; Arz-Yanlı Modeller ; Türkiye Ekonomisi ;