BAYAT, Tayfur İnönü Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey

FEASIBILITY OF FISHER EFFECT IN TURKEY: NONLINEAR COINTEGRATION APPROACH

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In this study, it is aimed to investigate relationship between alternative nominal deferred deposit interest rates and consumer price index in Turkey by using monthly data belonging 2002M1 and 2011M5 period in the context of Fisher (1930) hypothesis. Dickey-Fuller (1981) unit root test and Seo (2006) non-linear co-integration test are applied for this analysis. At the end of analysis, it can be inferred from results that as there is no change in regime after practicing inflation targeting strategy and floating exchange rate regime, there is no Fisher effect for Turkey in this period.

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Fisher Effect , Nonliear Cointegration , Inflation , Interest Rates

Erciyes University Journal Of Economics an‎d Administrative Sciences

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