Monetary Policy and Exchange Rate Dynamics in Emerging Markets: An Empirical Study of Türkiye

Mammadov, Avaz (2025) Monetary Policy and Exchange Rate Dynamics in Emerging Markets: An Empirical Study of Türkiye. In: FENNTARTHATÓSÁGI ÁTMENET – INNOVÁCIÓS ÖKOSZISZTÉMÁK – DIGITÁLIS MEGOLDÁSOK: Konferenciakötet. Soproni Egyetem Kiadó, Sopron, pp. 606-624. ISBN 9789633345504

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Abstract

Monetary policy has an important role in maintaining economic stability, particularly in emerging economies where exchange rate volatility is a common concern. Although the relationship between monetary policy and exchange rate fluctuations has been a topic of intense discussion, the outcomes, particularly for emerging countries, are mixed. This study focuses on Türkiye, given its extensive experience with many financial and economic crises, making it a great case study for economists. The primary goal of this paper is to gauge the impact of monetary policy on exchange rate volatility and examine if there is a relationship. The study was conducted using econometric techniques such as Ordinary Least Squares (OLS) regression, Engle-Granger cointegration, and Johansen cointegration tests and supplied by theoretical findings over the 20-years period from 2001 to 2021. The findings indicate a strong correlation between monetary policy and currency movements in Türkiye. However, during periods of currency crises, external factors independent of monetary policy have also played a significant role.

Tudományterület / tudományág

social sciences > business and management
social sciences > economic science(s)

Faculty

Not relevant

Institution

Soproni Egyetem

Item Type:	Book Section
SWORD Depositor:	Teszt Sword
Depositing User:	Csaba Horváth
Identification Number:	MTMT:36063669
Date Deposited:	01 Apr 2025 10:42
Last Modified:	01 Apr 2025 10:42
URI:	http://publicatio.uni-sopron.hu/id/eprint/3569

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