<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study examines the effectiveness of non-linear monetary policy interest rate channel shocks for the Turkish economy using the threshold VAR analysis in the period of 2006-2019. The interest channel is examined with the two models for both consumption transfer and investment transfer models. The results show that the interest rate channel is effective in the high regime (high macroeconomic instability) for the consumption transfer model, and it is partially effective in the low regime (low macroeconomic instability). On the other hand, for the model with investment expenditures flow, the interest rate channel is partially effective in both high and low regimes.</p>
</abstract>

This study examines the effectiveness of non-linear monetary policy interest rate channel shocks for the Turkish economy using the threshold VAR analysis in the period of 2006-2019. The interest channel is examined with the two models for both consumption transfer and investment transfer models. The results show that the interest rate channel is effective in the high regime (high macroeconomic instability) for the consumption transfer model, and it is partially effective in the low regime (low macroeconomic instability). On the other hand, for the model with investment expenditures flow, the interest rate channel is partially effective in both high and low regimes.

Revisiting of Interest Rate Channel: Nonlinear transmission of Monetary Policy Shocks to the Turkish Economy

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

This study examines the effectiveness of non-linear monetary policy interest rate channel shocks for the Turkish economy using the threshold VAR analysis in...

Revisiting of Interest Rate Channel: Nonlinear transmission of Monetary Policy Shocks to the Turkish Economy

Published Online: Jan 19, 2023

Page range: 199 - 223

Received: Oct 01, 2021

Accepted: Mar 29, 2022

DOI: https://doi.org/10.2478/jcbtp-2023-0009

Keywords
Turkish Economy, Monetary Policy Shocks, Nonlinear transmission, Interest Rate Channel

© 2023 Durmus Cagri Yildirim et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Revisiting of Interest Rate Channel: Nonlinear transmission of Monetary Policy Shocks to the Turkish Economy

Published Online: Jan 19, 2023

Page range: 199 - 223

Received: Oct 01, 2021

Accepted: Mar 29, 2022

DOI: https://doi.org/10.2478/jcbtp-2023-0009

KeywordsTurkish Economy, Monetary Policy Shocks, Nonlinear transmission, Interest Rate Channel

© 2023 Durmus Cagri Yildirim et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Turkish Economy, Monetary Policy Shocks, Nonlinear transmission, Interest Rate Channel