期刊名称：International Journal of Business and Economic Sciences Applied Research (IJBESAR)
印刷版ISSN：2408-0101
出版年度：2014
卷号：7
期号：3
页码：25-42
出版社：Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece
摘要：The objective of this paper is to test empirical validity of Fear of Floating hypothesis for Turkey after the adoption of Inflation Targeting.We start applying methodologies developed by Calvo and Reinhart (2002) and Ball and Reyes (2004, 2008) to check the probabilities of changes in exchange rate and monetary policy instruments before and after inflation targeting regime.We then use a VAR model to estimate exchange rate pass-through and response of monetary policy instruments to exchange rate shocks before and after inflation targeting regime.VAR model helps to understand the impacts of switch in monetary policy regime on exchange rate pass-through and foreign exchange market interventions.The paper concludes that after the adoption of inflation targeting regime, the exchange rate pass-through still matters for the attainment of inflation targets and the monetary policy do not exhibit a fear of floating practices.
关键词：Fear of floating; fear of inflation; exchange rate pass-through; free floating exchange rate
