Abstract:

Impact on the output of changes in monetary policy are realized through the monetary transmission mechanism. Exchange rate channel that one of the monetary transmission mechanism ise a make to direct influence on the net export volume in the floating exchange rate regime. The aim of this study is to investigate efficiency of the exchange rate channel on the real economic variables in Turkey that adopted the floating exchange rate regime after the financial crisis in 2001. In study was made an empirical application in the framework of the VAR model using quarterly data for the period Turkey's 2003:Q1-2012:Q4. Test results which on size of short-term interest rate, the real exchange rate, net exports and gross domestic product were observed that the exchange rate channel doesn’t work effectively in Turkey

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