Inflation uncertainty in Turkey impacts growth, inflation, and interest rates.
The effects of inflation uncertainty on inflation, economic growth, exchange rate, and interest rate in Turkey were studied using data from 1987 to 2013. High and low inflation periods were analyzed separately. The study found that inflation uncertainty increases inflation, has no impact on exchange rates, and has a positive effect on economic growth during high inflation periods but a negative effect during low inflation periods. Additionally, inflation uncertainty reduces interest rates during high inflation periods but increases them during low inflation periods.