Working Papers Home


2014 Working Papers
2013 Working Papers
2012 Working Papers
2011 Working Papers
2010 Working Papers
2009 Working Papers
2008 Working Papers
2007 Working Papers
2006 Working Papers
2005 Working Papers
2004 Working Papers
2003 Working Papers
2002 Working Papers
2001 Working Papers
2000 Working Papers


Search All Papers


JEL Classification


Past Working Papers (Prior to 2000)


Office of Research
Home Page



Information on
Submitting a Paper



 
 
"Causes of Inflation in Turkey: A Literature Survey with Special Reference to Theories of Inflation"

Aykut Kibritcioglu

 

First Author :

Aykut Kibritcioglu
Economics
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

kibritci@politics.ankara.edu

Create Profile

 
 
Abstract :
 
Turkey has experienced high and persistent inflation for more than twenty years. This paper attempts firstly to survey the extremely broad literature on theories of inflation, in order to be able to classify, understand and discuss the dynamics of inflation more carefully. It is mainly argued that inflation may be interpreted as a net result of sophisticated and continuous interactions of demand-side (or monetary) shocks, supply-side (or real) shocks, price-adjustment (or inertial) factors and political processes (or institutional factors). The second aim of the paper is to compare the existing empirical studies on Turkish inflation, by considering their sample period, data frequency, empirical methods, modeled macroeconomic variables and main results. Most of the studies reviewed here seem to have focused primarily on demand-side determinants (e.g., monetary growth and budget deficits), and partially on some supply-side factors (e.g., nominal exchange rates and oil prices). On the other hand, the components, degree and effects of inflation inertia need to be investigated in more detail. It is also noted that, in the future, the modeling attempts of the inflationary dynamics in Turkey would profit from the so-called “new political macroeconomics” because the role of the political process and institutions is not a weak explanatory factor of inflation that is easily ignored.
 
 
JEL Classification : B22 , E31
 
 
Manuscript Received : 2001
Manuscript Published : 2001
 
 
This abstract has been viewed 2433 times.
Click here to view the full text of this paper.