Economics, Econometrics and Finance
3 years ago

Turkey's Economic Trio: Inflation, Exchange Rates, and Interest Rates Impact Current Account Deficit

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International Journal of Business and Applied Social Science
Perspectives regarding Current Account Deficit, Interest Rates, Inflation and Exchange Rates; Turkey Example1
Burhan DOĞAN, Naciye ILICA

Paper Summary

Turkey has been facing a persistent issue with its current account deficit. To tackle this problem, it's crucial to understand the factors influencing it. A study analyzed Turkey's current account deficit from 2002 to 2019 using a VAR model and Granger causality test. The main focus was on the relationship between inflation, exchange rates, and interest rates with the current account deficit. The findings shed light on how these factors interact and impact Turkey's economy.

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