Sarac, Taha BahadirKaragoz, Kadir2021-11-012021-11-0120162212-5671https://doi.org/10.1016/S2212-5671(16)30190-3https://hdl.handle.net/11491/65705th Istanbul Conference of Economics and Finance -- JUN 06-07, 2016 -- Yildiz Tech Univ, Istanbul, TURKEYAfter the crises in 2001 inflation targeting regime has been adopted and short-term interest rates have been used as the main monetary policy tool in Turkey. In addition, Central Bank of the Republic of Turkey (CBRT) utilizes short-term interest rates against the sudden rises in dollar rate. In this context, we aim to determine the efficient level of short-term interest rates on dollar rate. Accordingly, using monthly data for the period of 2003: 02 - 2015: 08, we find no evidence that higher interest rates cause to a weakening of exchange rate, by the frequency domain Granger causality test. (C) 2016 The Authors. Published by Elsevier B.V.eninfo:eu-repo/semantics/openAccessForeign exchange rateshort-term interest ratefrequency domain Granger causality testConference Object3819520210.1016/S2212-5671(16)30190-3N/AWOS:000386630100020