Izzet Tasar

Re-Visiting Fisher Effect for Fragile Five Economies

Abstract In this study, we aim to investigate the relationship between interest rate and inflation rate in the context of the Fisher effect hypothesis for Fragile five economies. In this regard, we employ recently developed panel co-integration and panel causality test methods. The bi-directional causal relation between interest rate and inflation rate exists only in Brazil and Indonesia. On the other hand, there is no causation linkage in India. Results imply that Fisher effect exists only in Brazil and Indonesia.

Inflation Targeting for Turkey

Abstract In this study, we analyze the behavior of inflation rate in Turkey by using monthly data belonging 2003:M01-2014:M08 period. We employ Markov Switching Auto regression (MSI-AR) approach in order to investigate whether the monetary authorities have asymmetric behaviors. Results imply that the Central Bank of the Republic of Turkey plays active or inactive role in the economy due to economic conditions.

Correlation of -Previous Advertisement Expenses- and -Total Sales-of Firms during the Big Recession☆

Abstract We know that the global crises that is named “Big Recession” by IMF first resulted a sharp decrease in total demand. The sharp decrease in total demand is not anything different from the real equilibrium in the consumptions. It is obvious that the market conditions forces the individual consumption to an upper level by its instruments. The most important instrument is Advertisement. Paco Underhill; an environmental psychologist says: “If we went into shops only when we needed to buy something, and if once in there we bought only what we needed, the economy would collapse, boom.” We will use 20 companies as a sample for our research. We will try to show the correlation between the adv. Expenses and sales and try to find an answer if it is worse or better to make advertisement expenses in the previous period of such a recession.