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Effects of global energy and price fluctuations on Turkey's inflation: new evidence

Economic Change and Restructuring · Ağustos 2023

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YÖKSİS Kayıtları
Effects of global energy and price fluctuations on Turkeys inflation: new evidence
Economic Change and Restructuring · 2023 SSCI
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Makale Bilgileri

DergiEconomic Change and Restructuring
Yayın TarihiAğustos 2023
Cilt / Sayfa56 · 2695-2728
Özet This study explores the time-varying effect of global energy price and non-energy price changes on domestic inflation in Turkey using monthly data from January 2003 to February 2022. There is significant evidence of full-sample causality from global and non-energy prices to domestic inflation. Time-varying causality findings show that global energy and non-energy prices have a strong time-stamp effect on domestic inflation. In addition to this, the threshold findings show that energy and non-energy prices differ at the time of domestic inflation in a nonlinear relationship. The multi-structural break test findings clearly indicate energy and non-energy price break date collinearity with Turkey’s inflation. Time-varying causality findings provide evidence that energy prices—the first wave—and non-energy prices—the second wave—create two waves on domestic consumer prices. However, this does not seem to be the only problem policymakers have to overcome in the fight against domestic inflation, because both price indices are effective through Turkey’s currency channel.

Yazarlar (2)

1
Ibrahim Özmen
ORCID: 0000-0003-2632-4217
2
Şerife Özşahin
ORCID: 0000-0001-8310-1816

Anahtar Kelimeler

Domestic inflations Global energy price Non-energy price Nonlinear estimators Time-varying causality

Kurumlar

Necmettin Erbakan Üniversitesi
Meram Turkey
Selçuk Üniversitesi
Selçuklu Turkey