## Exchange Rate Pass-Through in Turkey

_IMF Working Papers, November 1, 2002_

## Source details

**Canonical URL:** [Exchange Rate Pass-Through in Turkey](https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-rate-pass-through-in-turkey-16188)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/exchange-rate-pass-through-in-turkey-16188/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/exchange-rate-pass-through-in-turkey-16188/index.json)
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## Bibliographic details
- Authors: Marco Rossi, Daniel Leigh
- Published: November 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451874518.001

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### Summary and main findings
- Paper uses a recursive vector autoregression model to investigate the impact of exchange rate movements on prices in Turkey.
- Key findings:
  - (i) the impact of the exchange rate on prices is over after about a year, but is mostly felt in the first four months,
  - (ii) the pass-through to wholesale prices is more pronounced compared to the pass-through to consumer prices, and
  - (iii) the estimated pass-through is complete in a shorter time and is larger than that estimated for other key emerging market countries.

### Methodology
- Empirical approach: recursive vector autoregression (VAR) model.
- Focus: relationship between exchange rate movements and domestic prices in Turkey, in the context of moving to an inflation targeting regime.
- Impulse response analysis used to trace timing and magnitude of pass-through.

### Subjects and keywords
- Subjects: Consumer price indexes; Consumer prices; Exchange rates; Foreign exchange; Inflation; Prices; Wholesale price indexes.
- Keywords: Africa; Consumer price indexes; Consumer prices; distribution chain; exchange rate movement; Exchange rate pass-through; exchange rate shock; Exchange rates; impulse response; inflation; inflation targeting; pass-through; pass-through coefficient; price; Turkey; VAR; Wholesale price indexes; WP; WPI inflation.

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## Content in this bundle

- **Exchange Rate Pass-Through in Turkey - WP/02/204**
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  - [Exchange Rate Pass-Through in Turkey - WP/02/204 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp02204.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-rate-pass-through-in-turkey-16188_