The effects of exchange rate risk on economic performance: the Turkish experience

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Berument H., Dinçer N. N.

APPLIED ECONOMICS, cilt.36, sa.21, ss.2429-2441, 2004 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 36 Sayı: 21
  • Basım Tarihi: 2004
  • Doi Numarası: 10.1080/0003684042000287637
  • Dergi Adı: APPLIED ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.2429-2441
  • TED Üniversitesi Adresli: Hayır

Özet

This study examines the effects of real exchange rate risk on the economic performance for an emerging, small open economy: Turkey. When the ratios of the total foreign exchange liabilities of the Central Bank of the Republic of Turkey (CBRT) to: (1) total reserves; (2) the CBRT's reserves; and (3) the CBRT's total Turkish lira liabilities are taken proxy of exchange rate risk, the empirical evidence suggests that the increase in exchange rate risk causes a depreciation in the real exchange rate, an increase in prices and a decrease in output.