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DOI :10.26650/mcd2024-1555315   IUP :10.26650/mcd2024-1555315    Tam Metin (PDF)

Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye

Savaş Kaptan

 The debate over measuring central bank monetary policy stance persists in the literature. Evolving economic dynamics and diverse economic structures render traditional metrics inadequate, prompting the development of comprehensive monetary conditions indexes. In this respect, this study aims to craft a novel monetary conditions index for Türkiye, discovering an important yet neglected tool. This index consists of the real effective exchange rate and a spread that is the difference between the Central Bank weighted cost of funding rate and the benchmark bond yield. The weights of the exchange rate and spread in the index were determined using a VAR model and variance decomposition analysis. According to these weights, we created the monetary conditions index and tested its impact on the prices throughtheGrangercausalityanalysis.Theresultsindicatethatourmonetary conditions index significantly affects the prices in Türkiye, which proves the role of the government bond yield in the monetary transmission. It is further found that the exchange rate has a direct impact on the inflation rate and responds significantly to changes in the spread, implying that the spread influences prices primarily through the exchange rate pass-through mechanism.

JEL Classification : E43 , E52 , E63

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APA

Kaptan, S. (2024). Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye. Maliye Çalışmaları Dergisi, 0(72), 50-63. https://doi.org/10.26650/mcd2024-1555315


AMA

Kaptan S. Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye. Maliye Çalışmaları Dergisi. 2024;0(72):50-63. https://doi.org/10.26650/mcd2024-1555315


ABNT

Kaptan, S. Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye. Maliye Çalışmaları Dergisi, [Publisher Location], v. 0, n. 72, p. 50-63, 2024.


Chicago: Author-Date Style

Kaptan, Savaş,. 2024. “Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye.” Maliye Çalışmaları Dergisi 0, no. 72: 50-63. https://doi.org/10.26650/mcd2024-1555315


Chicago: Humanities Style

Kaptan, Savaş,. Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye.” Maliye Çalışmaları Dergisi 0, no. 72 (Mar. 2025): 50-63. https://doi.org/10.26650/mcd2024-1555315


Harvard: Australian Style

Kaptan, S 2024, 'Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye', Maliye Çalışmaları Dergisi, vol. 0, no. 72, pp. 50-63, viewed 10 Mar. 2025, https://doi.org/10.26650/mcd2024-1555315


Harvard: Author-Date Style

Kaptan, S. (2024) ‘Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye’, Maliye Çalışmaları Dergisi, 0(72), pp. 50-63. https://doi.org/10.26650/mcd2024-1555315 (10 Mar. 2025).


MLA

Kaptan, Savaş,. Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye.” Maliye Çalışmaları Dergisi, vol. 0, no. 72, 2024, pp. 50-63. [Database Container], https://doi.org/10.26650/mcd2024-1555315


Vancouver

Kaptan S. Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye. Maliye Çalışmaları Dergisi [Internet]. 10 Mar. 2025 [cited 10 Mar. 2025];0(72):50-63. Available from: https://doi.org/10.26650/mcd2024-1555315 doi: 10.26650/mcd2024-1555315


ISNAD

Kaptan, Savaş. Roles of the Government Bond Yield and the Exchange Rate in the Monetary Conditions of Türkiye”. Maliye Çalışmaları Dergisi 0/72 (Mar. 2025): 50-63. https://doi.org/10.26650/mcd2024-1555315



ZAMAN ÇİZELGESİ


Gönderim24.09.2024
Kabul04.11.2024
Çevrimiçi Yayınlanma14.11.2024

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