aim is to estimate using VAR, how the currency substitution, exchange
rate, real effective exchange rate and interest rate behave. Currency
substitution data I achieved by dividing the foreign currency deposits
by the M2 definition of money supply. The exchange rate is the
USD/Turkish Lira exchange rate, real effective exchange rate I obtained
from the Central Bank database and the interest rate is the maximum
annual rate paid to turkish lira deposits.
In January 2005, the Turkish Lira was redenominated, by taking off 6
zeros from the currency. So I would like to find out if this has
effected the currency substitution growth. I suspect it should have a
negative impact since this would increase the confidence in the turkish
I need to find out the impulse responses of currency substitution to
changes in the exchange rate, real effective exchange rate and also to
deposit rate.
I guess we’d need to take natural logs of all but the interest rate. And
introduce a dummy variable for the years from 2005 onwards.

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.