Speaking of linkages, how about the link between benchmark rate and ISE? and benchmark vs. policy rate? Do you have a picture for those? I remember you posted something about this over a year ago, but I couldn't find it.
Tuesday, March 29, 2011
Loyal reader Abe Rudder has the following follow-up question to my recent post on disappearing linkages of the Turkish economy:
She certainly has a much better memory than me; I have no recollection of that post, although I am sure she is right:) But here are the pictures she is asking for, courtesy of my friends at Turkey Data Monitor and your friendly neighborhood economist.
First, the benchmark and ISE:
Then, the benchmark and the new policy rate, i.e. the one-week repo rate:
I am not going to try to explain the relationships, as they are far from simple and not iron-clad, but here are the pictures, in case you want to make up your own story and post it as a comment here:)....