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Abstract:
This paper investigates the basic nominal stylized facts of business cycles in Turkey using monthly data from 1978:1 to 1997:7 and the methodology suggested by Kydland and Prescott (1990). In particular, correlations of the cyclical part of the data found using two different filtering techniques namely the Hodrick-Prescott filter and the twelve-month percentage change are obtained and the robustness of the results across these two techniques is evaluated. We see no clear-cut pattern for various measures of money. Price, inflation and interest rate series are all countercyclical giving support to a supply-driven model for the Turkish
economy.
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