C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data AccessReturn

Measures of inequality typically rely on price indices formulated for a representative consumer, falsely assuming an identical consumption basket across households within the country. However, consumption patterns differ across households; hence, the changes in price levels might have different impacts on households at different points in the income distribution. To challenge this prevailing assumption and gain a more accurate comprehension of income inequality in Argentina from 2004 to 2018, I constructed income level-specific cost of living indices using the Argentinian Household Expenditure Survey. The results demonstrated that from 2004 to 2012, the poor experienced a higher increase in the cost of living compared to the richest group. Conversely, between 2012 and 2018, price changes displayed anti-rich behaviour. Considering the cost of living index differentials in the Gini coefficient calculations highlights that the price movements had an inegalitarian bias between 2004 and 2012, whereas the trend reversed in the 2012-2018 period.

This article aims at revealing the effectiveness of Turkish monetary policy in controlling inflation rate and the stability of exchange rate using the rational expectation framework that incorporates the fiscal role of exchange rate. Based on quarterly data covering the period between 1983: Q4 and 2003: Q4, the analysis affirms that the effort of the Turkish monetary policy at influencing the finance of government fiscal deficit through the determination of the inflation-tax rate, to some extent, affects both the rate of inflation and the real exchange rate, thereby causing volatility in their rates. Moderate evidence emerges that inflation affects volatility of its own rate as well as the rate of real exchange.