Asymmetric Exchange Rate Pass-Through into Inflation in Turkey: A NARDL Approach

Inflation expectation resulting from the exchange rate increases is one of widely discussed topics in literature. The extent effect pass-through on inflation, and duration impact are essential data that should be considered determining disinflation policies. literature findings show high level rises much faster especially dollarized economies with inflation inertia. On other hand, it has been revealed relationship between asymmetrical. Turkish economy, which struggles chronicle higher experienced a currency crisis 2018. Therefore, to analyse Turkey very important for effectiveness fight against developing policy proposal this direction. This study examined asymmetric relationships using nonlinear autoregressive distributed lag model 2004:Q1 – 2019:Q4. Findings indicate into long-run. Besides, decrease no statistically significant but an increase also short-run.