ACET DÖNMEZ, GİZEM2023-05-162023-05-162023-05-01Güneş H., Acet Dönmez G., "The role of fiscal discipline on the exchange-rate pass-through during inflation targeting", APPLIED ECONOMICS LETTERS, cilt.31, ss.1-7, 20231350-4851http://dx.doi.org/10.1080/13504851.2023.2208819https://hdl.handle.net/11424/289383The purpose of this paper is to examine the role of fiscal discipline on the dynamics of exchange rate pass-through during inflation targeting. The present study analyses the Turkish economy for the period 2006–2022 by the use of threshold regression models. Our results suggest that fiscal discipline, measured by the IMF-defined primary budget balance as a share of GDP (which excludes the one-off government revenues balance such as privatization, interest earnings, and real estate sales) has a significant role in inflation dynamics. The degree of exchange rate pass-through is significantly lower and thus raises the effectiveness of inflation targeting when the government ensues strict fiscal disciplineenginfo:eu-repo/semantics/openAccessİktisatEconomicsSosyal Bilimler (SOC)Ekonomi ve İşEKONOMİSocial Sciences (SOC)ECONOMICS & BUSINESSECONOMICSEkonomi ve EkonometriEkonomi, Ekonometri ve Finans (çeşitli)Genel Ekonomi, Ekonometri ve FinansSosyal Bilimler ve Beşeri BilimlerEconomics and EconometricsEconomics, Econometrics and Finance (miscellaneous)General Economics, Econometrics and FinanceSocial Sciences & HumanitiesExchange rate pass-throughinflation targetingfiscal disciplineeffectiveness of monetary policyarticle311710.1080/13504851.2023.2208819