Standard neoclassical growth models assume that foreign savings are perfect substitutes of domestic savings in financing domestic capital. Therefore, domestic saving rates are supposed to have no impact on investments and growth rates of countries. However, these models fail to explain the...

The question of why some countries suffer from crises, while some others can escape from them, is challenging. Empirical evidence suggests that countries with stronger financial institutions are more durable to the wind of crises. In this paper, we investigate empirically whether the link...

Bu calismada 1970-2008 donemindeki finansal krizleri etkileyen unsurlar gelismis ve gelismekte olan ulkeler icin ayri ayri arastirilmaktadir. Panel logit veri teknigi kullanilarak yapilan analizde toplam 50 ulke olmak uzere, 24 tanesi gelismis, 26 tanesi gelismekte olan ulkenin finansal krizleri...

This paper estimates NAIRU (Non-Accelerating Inflation Rate of Unemployment) for the Turkish economy as an unobserved stochastic variable by systems approach. Based on a Phillips curve equation combined with an Okun law for output gap and unemployment gap, the systems approach imposes stochastic...

Although previous studies on currency substitution in Turkey confirm the existence of currency substitution, these works ignore whether this process reached an irreversible stage or not. This paper analyzes the persistence of currency substitution in Turkey through inclusion of a ratchet...

This study analyses monetary transmission mechanism in Turkey using a small structural macroeconomic model. The core equations of the model consist of aggregate demand, wage-price setting, uncovered interest rate parity, foreign sector and a monetary policy rule. The aim of the paper is to...

The poor performance of sticky-price models with rational expectations in explaining the inflationary inertia in the US economy constitutes the basis for sticky-price models of near-rational expectations in the recent literature. However, previous studies on inflationary inertia in Turkey not...

The paper analyzes dollarization in the Turkish economy given the evidence on dedollarization signals. On conducting a Vector Autoregression (VAR) model, the empirical evidence suggests that dollarization has mostly been shaped by macroeconomic imbalances as measured by exchange rate...