The relotion among the exchange rate, inflation and economical growth in Turkey: Econometric analysis (2003:1-2017:3)

In this study, the relationship among the exchange rates, inflation and economic growth in Turkey is examined with time series analysis by using quarterly period data of 2003Q1-2017Q3. This period is included to analysis using dummy variable because it contains 2008 global crisis period between 2003Q1-2017Q3 periods in Turkey. The original data of Consumer Price Indeks and Real Effective Exchange Rate used in the model is obtained from Central Bank of The Republic of Turkey Electronic Data Distribution System on the other hand Gross Domestic Product Chained Volume Index data is derived from the website of Turkish Statistical Institute. In this study, it is excated action and reaction functions, variance decomposition and analysis of Granger casuality test by using VAR analysis. Acording to the results that is derived from Granger casuality analysis, while it is found one way casuality relation from real effective exchange rate to inflation, it is confirmed that there isn't any relation between real effective exchange rate to growth .Additionaly, it is defined one way casuality relation from inflation to growth.