PL EN


2008 | 3 | 1 | 35-40
Article title

IS GOLD A HEDGE AGAINST TURKISH LIRA

Content
Title variants
Languages of publication
EN
Abstracts
EN
This paper investigates whether gold is an internal hedge and/or an external hedge against Turkish lira (TL) by using monthly data from January 1995 to November 2006. Cointegration test results confirm the long-term relationships between the gold price and consumer price index and between the gold price and TL/US dollar exchange rate. The Granger Tests, based on vector error correction model (VECM), indicate that gold price Granger causes the consumer price index and TL/US dollar exchange rate in a unidirectional way. It is concluded that gold acts as an effective hedge against potential future TL depreciation and rising domestic inflation. Furthermore, gold price may be considered as a good indicator of inflation and hence it can be used as a guide to monetary policy.
Keywords
Contributors
author
  • Feride Ozturk, Department of Economics, Dunlupinar University, Tavsanli Yolu 10.Km, Kutahya, Turkey
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
10BHAAAA076127
YADDA identifier
bwmeta1.element.50a7f7b0-7a3d-3122-b318-b9e3b6d8f933
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.