Dynamics of the exchange rate in Turkey
Keywords:
Macroeconomic variables, Pearson’s correlation, Monetary policy, Fiscal policyAbstract
The prime aim of this study is to analysis the impact of macroeconomic variables on the volatility of exchange rate in Turkey. For this purpose, we have applied the Pearson’s correlation and taken the data from 1992 to 2011. Our results are showing that increase and decrease the macroeconomic variables have always impact on the exchange rate. An attempt has been done to review the association between Turkey exchange rate and macroeconomic variables. We have suggested that government should focus on the policies of monetary and fiscal policies for better performance.
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