## An Econometric Analysis of the Determinants of Inflation in Turkey

_IMF Working Papers, December 1, 1997_

## Source details

**Canonical URL:** [An Econometric Analysis of the Determinants of Inflation in Turkey](https://www.imf.org/en/publications/wp/issues/2016/12/30/an-econometric-analysis-of-the-determinants-of-inflation-in-turkey-2443)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/an-econometric-analysis-of-the-determinants-of-inflation-in-turkey-2443/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/an-econometric-analysis-of-the-determinants-of-inflation-in-turkey-2443/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/30/an-econometric-analysis-of-the-determinants-of-inflation-in-turkey-2443/bundle-manifest.json)

## Bibliographic details
- Authors: Laura Papi, G. C. Lim
- Published: December 1, 1997
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451858389.001

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### Overview
- High and variable inflation has been a central feature of the Turkish economy since the 1970s.
- The paper analyzes price determination within the framework of a multi-sector macroeconomic model for the period 1970–95.
- The analysis aims to shed light on determinants of inflation in Turkey, focusing on monetary, fiscal, exchange rate, and inertial factors.

### Main findings
- Monetary variables play a central role in the inflationary process:
  - Initially, money (broad monetary variables) was central.
  - More recently, the exchange rate has played a central role.
- Public sector deficits contribute to inflationary pressures.
- Inertial factors are quantitatively important in sustaining inflation.
- Policymakers’ commitment to active exchange rate depreciation on several occasions in the past 15 years has also contributed to the inflationary process.

### Subjects and keywords
- Subject areas listed:
  - Exchange rates
  - Foreign exchange
  - Government debt management
  - Inflation
  - Labor
  - Prices
  - Public financial management (PFM)
  - Real exchange rates
  - Real wages
- Keywords listed:
  - cost pressure
  - equilibrium exchange rate
  - exchange rate disequilibrium
  - Exchange rates, foreign currency
  - Government debt management
  - Inflation
  - market disequilibrium terms
  - mining sector price
  - monetary policy
  - price
  - price determination
  - price equation
  - price index
  - price inflation
  - price level
  - price markup
  - public finance
  - Real exchange rates
  - Real wages
  - WP

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## Content in this bundle

- **An Econometric Analysis of the Determinants of Inflation in Turkey - WP/97/170**
  - [An Econometric Analysis of the Determinants of Inflation in Turkey - WP/97/170 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/_wp97170.pdf.md){rel="alternate" type="text/markdown"}
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/an-econometric-analysis-of-the-determinants-of-inflation-in-turkey-2443_