Re-examination of the inflationary framework in Turkey in the light of main inflation theories (post- 1980 period)

Discussions upon the inflation phenomenon beginning fron the late-1970s till the very recent times have still been highly important in the Turkish economy. Following such developments, many different ideas as for the reasons of the inflation have been alleged, and in this line, various policy proposals have also been presented. The main reasons of the inflationary framework are generally explained with a distinction inclusive of monetization, demand pull pressure, cost push or supply side factors and past inflationary expectations. In this perspective, the author of this thesis tries to explore the reasons of inflation by employing some contemporaneous econometric analyses, and concludes by emphasizing in a similar way to the approaches in line with cost based factors that past expectations and positive exchange rate shocks are highly important on inflation.