This study examines the inflation phenomenon employing monthly data set for period 2002:01-2020:07 in Turkey. We separate effects of dependency on imported intermediate goods and inputs production using two different exchange rates. In this way, direct arising from USD / TL rate indirect real effective are revealed separately. doing so, we also compare sub-periods which trends occur The results...

The New Keynesian Phillips Curve is at the center of two raging empirical debates. First, how can purely forward looking pricing account for the observed persistence in aggregate inflation. Second, price-setting responds to movements in marginal costs, which should therefore be the driving force to observed inflation dynamics. This is not always the case in typical estimations. In this paper, w...

Identification of New Keynesian Phillips Curves from a Global Perspective New Keynesian Phillips Curves (NKPC) have been extensively used in the analysis of monetary policy, but yet there are a number of issues of concern about how they are estimated and then related to the underlying macroeconomic theory. The first is whether such equations are identified. To check identification requires spec...