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Miscellany

Exchange market pressure in Turkey 1993–2004: an application of the girton–roper monetary model

Pages 51-62 | Published online: 17 Feb 2007
 

Abstract

In this paper, Lance Girton & Don Roper's (Citation1977) monetary model of Exchange Market Pressure (EMP) is applied to the Turkish economy in the period of 1993–2004. The results provide strong evidence of negative relation between domestic credit and exchange market pressure (EMP) and indicate that the Central Bank of the Republic of Turkey (TCMB) absorbed most of the exchange market pressure by adjusting the foreign reserves.

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