International Conference on Eurasian Economies
11-13 June 2019 – Famagusta, Turkish Republic of Northern Cyprus
Paper properties
Paper ID : 2322
Status : Paper published
Language : Turkish
Topic : Macroeconomics
Presenter: Ph.D. candidate Berk Palandökenlier
Session : 1A Makroekonomi
The Relationship Between Inflation and Nominal Interest Rate: Case of Selected Countries
Enflasyon ve Faiz Oranı Arasındaki Nedensellik İlişkisi: Seçilmiş Ülkeler İçin Ampirik Bir Analiz
- Prof. Dr. Harun Bal (Çukurova University, Türkiye)
- Dr. Esma Erdoğan (Çukurova University, Türkiye)
- Ph.D. candidate Berk Palandökenlier (Gaziantep University, Türkiye)
Abstract
When the empirical studies in the literature on inflation and interest relation are examined, it can be seen that a positive or negative change in one of these two variables has a significant effect on the other variable. This situation reveals the necessity of evaluating the relationship between variables within the framework of cause and effect. In this study, the relationship between inflation, interest rates, showing similar macroeconomic structures Turkey, Indonesia and Brazil the country for the period 1985-2018 using annual data sets separately for each country were explained by the VAR model. The results showed only right way for Turkey to reciprocate the nominal rate of inflation variables for Indonesia and Brazil were found bidirectional causality between countries.
JEL codes: C12, C22, E31
Bal, Harun, Erdoğan, Esma, Palandökenlier, Berk (2019). "The Relationship Between Inflation and Nominal Interest Rate: Case of Selected Countries" in Proceedings of International Conference of Eurasian Economies 2019, pp.1-10, Famagusta, Turkish Republic of Northern Cyprus.
DOI: https://doi.org/10.36880/C11.02322
