The Impact of Foreign Exchange and Oil Prices Shocks on the Novel Google Trend Based Index of Economic Policy Uncertainty: A Case of Developing Country

Economic policy uncertainty is one of the remarkable issues in literature recent years. Since there no such index for Turkey, Google Trend based novel economic (EPU) was created first time by this study. Then impact oil price and exchange rate on Turkey were measured ARDL bound test. As a result analysis, cointegration relationship found between all series. In addition, while prices have significant effects EPU long-run, long-run rates not been observed. short-run, it seen that 4% deviations occurring brent improved next period. The short-run Granger causality relationships examined variables detected Block Exogenous Wald results obtained show mutual USD / TL unidirectional from Brent to has detected.