The relationship between ınflation and ınflation uncertainty under different monetary policy regimes

The purpose of this study is to analyze the relationship inflation and inflation uncertainty of Turkey for four different monetary policy regimes using EGARCH and Granger causality methods over 1990: 1-2012: 12. In this study, the monthly logarithmic difference of the Consumer Price Index (CPI) used. The econometric findings suggest that the hyothesis that high inflation reduces inflation uncertainty is strongly supported both for short and long- term in Turkey for the time period 1990 and 2012. Furthermore, in Turkey for each monetary policy regimes in the short-term inflation uncertainty plays a role in increasing inflation in Turkey.