Exchange-rate pass-through in Turkey with a supply and use model

Abstract

ABSTRACTUsing a multisectoral model and data from the supply and use tables, this article estimates the exchange-rate pass-through to the domestic price level of the Turkish economy. The results indicate that a unit change in the exchange rate leads to 0.61 units of change in the overall price level. This effect comes out mostly through the industry, and the primary sector; while in terms of products, the energy sector is the major actor for the changes in the domestic price level.