Abstract
Main aim of this study to examine the effect of real devaluation on domestic output for Turkey over the period 1987Q1-2008Q4 by using unit root and cointegration tests. The results show that, increasing money supply has no effect on output; both foreign income and government spending are neutral in short run but has positive effect on output. Real devaluation is contractionary in the short run but it is expansionary in the long run for Turkey.
Article Details
- Year: 2011
- Volume: 32
- Issue: 1
- Pages: 19 - 30
- Accepted: 23.03.2011
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DOI:
https://doi.org/10.5281/zenodo.21126432 -
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How to Cite?
Veli Yilanci, Aycan Hepsağ (2011). The Contractionary and Expansionary Effects of Devaluation: Empirical Evidence from Turkey. Journal of Economic Cooperation and Development, 32(1), 19-30. https://doi.org/10.5281/zenodo.21126432
