01703cas a2200241 a 4500 AALejournalIMF000200 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853414 1018-5941 BD-DhAAL BD-DhAAL Scacciavillani, Fabio. Exchange Rate Movements, Inflation Expectations, and Currency Substitution in Turkey / Fabio Scacciavillani. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper contains an empirical analysis of currency substitution in Turkey: a simple relationship between the share of foreign currency holdings in M2X on one side and movements in the exchange rate or inflation on the other is derived from a two-stage portfolio choice model. This relationship is estimated by band spectrum regression which allows to remove from the data the short-term cyclical components. The results show that the relationship between currency substitution depends mainly on long-term movements in the exchange rate, while the effect of inflation on currency substitution is not statistically significant. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1995/111 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/111/001.1995.issue-111-en.xml IMF e-Library