Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approach

Abstract This paper investigates the effect of the exchange rate on prices through wavelet analysis for the period 2010:01-2019:12 in Turkey. The Wavelet Transform outcomes reveal that at a higher frequency, an upsurge in the Consumer Price Index (CPI) is associated with an increase in the exchange...

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Main Authors: Faik Bilgili, Sevda Kuşkaya, Pelin Gençoğlu, Fatma Ünlü, Cosimo Magazzino
Format: Article
Language:English
Published: SpringerOpen 2024-12-01
Series:Journal of Economic Structures
Subjects:
Online Access:https://doi.org/10.1186/s40008-024-00341-2
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author Faik Bilgili
Sevda Kuşkaya
Pelin Gençoğlu
Fatma Ünlü
Cosimo Magazzino
author_facet Faik Bilgili
Sevda Kuşkaya
Pelin Gençoğlu
Fatma Ünlü
Cosimo Magazzino
author_sort Faik Bilgili
collection DOAJ
description Abstract This paper investigates the effect of the exchange rate on prices through wavelet analysis for the period 2010:01-2019:12 in Turkey. The Wavelet Transform outcomes reveal that at a higher frequency, an upsurge in the Consumer Price Index (CPI) is associated with an increase in the exchange rate, for the period 2011:03-2013:12, and an increase in the exchange rate is accompanied by a higher CPI during the 2015:02-2018:10 period. Moreover, at a lower frequency, an increase in CPI is accompanied by a rise in the exchange rate during the 2014:01-2017:12 period. These results highlight that the pass-through effect is empirically confirmed in Turkey. It is also shown that the power of the pass-through effect might vary from one sub-sample period to another with different frequencies.
format Article
id doaj-art-cd466a8c5d9c45179caabf4f03bb94eb
institution DOAJ
issn 2193-2409
language English
publishDate 2024-12-01
publisher SpringerOpen
record_format Article
series Journal of Economic Structures
spelling doaj-art-cd466a8c5d9c45179caabf4f03bb94eb2025-08-20T02:57:36ZengSpringerOpenJournal of Economic Structures2193-24092024-12-0113112310.1186/s40008-024-00341-2Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approachFaik Bilgili0Sevda Kuşkaya1Pelin Gençoğlu2Fatma Ünlü3Cosimo Magazzino4Faculty of Economics and Administrative Sciences, Department of Economics, Erciyes UniversityDepartment of Law, Erciyes University, Justice Vocational CollegeErciyes University, Research and Application Center of KayseriFaculty of Economics and Administrative Sciences, Department of Economics, Erciyes UniversityDepartment of Political Science, Roma Tre UniversityAbstract This paper investigates the effect of the exchange rate on prices through wavelet analysis for the period 2010:01-2019:12 in Turkey. The Wavelet Transform outcomes reveal that at a higher frequency, an upsurge in the Consumer Price Index (CPI) is associated with an increase in the exchange rate, for the period 2011:03-2013:12, and an increase in the exchange rate is accompanied by a higher CPI during the 2015:02-2018:10 period. Moreover, at a lower frequency, an increase in CPI is accompanied by a rise in the exchange rate during the 2014:01-2017:12 period. These results highlight that the pass-through effect is empirically confirmed in Turkey. It is also shown that the power of the pass-through effect might vary from one sub-sample period to another with different frequencies.https://doi.org/10.1186/s40008-024-00341-2Pass-through Effect; Exchange Rate; Continuous Wavelet Transform; Turkey
spellingShingle Faik Bilgili
Sevda Kuşkaya
Pelin Gençoğlu
Fatma Ünlü
Cosimo Magazzino
Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approach
Journal of Economic Structures
Pass-through Effect; Exchange Rate; Continuous Wavelet Transform; Turkey
title Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approach
title_full Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approach
title_fullStr Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approach
title_full_unstemmed Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approach
title_short Exchange rate pass-through at high and low frequencies in Turkey: a continuous wavelet transform model approach
title_sort exchange rate pass through at high and low frequencies in turkey a continuous wavelet transform model approach
topic Pass-through Effect; Exchange Rate; Continuous Wavelet Transform; Turkey
url https://doi.org/10.1186/s40008-024-00341-2
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