Relationship Between the Inflation and Nominal Interest Rate: the Case of Turkey (2004-2013)

This paper examines the relationship between the inflation and interest rate in turkey for the period 2004-2013. the results obtained in this study have pointed to the existence of fisher effect in turkey during the period 2004-2013. according to the johansen, lütkepohl-saikkonen cointegration tests and dynamic least squares (dols)method the results applied in the study, a long-run relationship has been found between the inflation(enf) and nominal interest rate (nfo) variables. in this context, the developments is related to each other about the inflation and nominal interest rates in turkey for during the period 2004-2013. therefore, the central bank of the republic of turkey should conduct to implement monetary policy taking into account the long-run relation for the next period