Title: Identifying the Liquidity Effects of Monetary Policy Shocks For a Small Open Economy: Turkey
Abstract: This paper proposes a new liquidity measure for a small open economy. The new measure includes the net liquidity provided to the system by a central bank after accounting for the central bank’s involvement in the foreign exchange market. Empirical evidence gathered from Turkey suggests that a positive innovation in liquidity increases output temporarily and that its effect on prices, exchange rate and money are permanently higher.
Publication Year: 2011
Publication Date: 2011-09-01
Language: en
Type: preprint
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