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Effects of USD-Euro parity on a small open economy: evidence from Turkey

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This study assesses the effect of USD-Euro parity on a small open economy where exports are predominantly denominated in Euros and imports are denominated in USD. Empirical evidence from Turkey suggests that a positive change in the USD value of the Euro appreciates the local currency, decreases inflation and increases output.
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Document Type: Research Article

Affiliations: 1: Department of Economics, Bilkent University, Turkey 2: Research and Monetary Policy Department, Turkey

Publication date: 2008-08-01

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