<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

Pubblicato online: 19 gen 2023

Pagine: 199 - 223

Ricevuto: 01 ott 2021

Accettato: 29 mar 2022

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

Parole chiave
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

Pubblicato online: 19 gen 2023

Pagine: 199 - 223

Ricevuto: 01 ott 2021

Accettato: 29 mar 2022

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

Parole chiaveTurkish 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.

Parole chiave
Turkish Economy, Monetary Policy Shocks, Nonlinear transmission, Interest Rate Channel