Topics in Middle Eastern and North African Economies
Title
Is the Food Price Volatility Responsible for Inflation Volatility? An Investigation for Turkey
Document Type
Article
Publication Date
9-1-2018
Abstract
The purpose of this study is to investigate the impact of food price and its volatility in the overall level and volatility of inflation measured by the consumer price index (CPI). Appropriate GARCH models are estimated for the food and headline inflation in Turkey as tests confirms the presence of volatility for both. Starting with a hybrid new Keynesian type of Phillips Curve, analyses based on ARDL bounds tests, VAR models and ANN all indicate that food-inflation and the change in exchange rate proxied by the US dollar have significant and lasting impact on the level and the volatility of inflation in Turkey. Hence, a policy focus on core inflation should account the food inflation.
Journal Title
Topics in Middle Eastern and North African Economies
ISSN
2334-282X
Publisher
Middle East Economic Association and Loyola University Chicago
Volume
20
Issue
2
Recommended Citation
Lopcu, Kenan and Şengül, Seda, "Is the Food Price Volatility Responsible for Inflation Volatility? An Investigation for Turkey". Topics in Middle Eastern and North African Economies, electronic journal, 20, 2, Middle East Economic Association and Loyola University Chicago, 2018, http://www.luc.edu/orgs/meea/
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Copyright Statement
© 2018 The Authors
Comments
Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles.