High Interest Rates in Turkey Linked to Inflation Uncertainty
The study looked at how interest rates and inflation are connected in Turkey. They used different methods to see if one causes the other. The results showed that higher interest rates are linked to higher expected inflation and more uncertainty about inflation in the long term. They also found that inflation uncertainty and expected inflation can affect interest rates, and interest rates can affect inflation. This means there is a two-way relationship between interest rates and inflation in Turkey during the period they studied.