Plummeting Currency Sends Shockwaves Through Small Economies, Experts Warn
The study looked at how exchange rates affect prices in Turkey from 2006 to 2015. They found that using a specific type of model made their results more realistic compared to traditional models. This new model showed that changes in the exchange rate have a bigger impact on prices than previously thought. The researchers say it's important to use a realistic model to understand how exchange rates influence prices in small open economies like Turkey.