This study assesses how inflation expectations respond to inflation targets, forecasts, and realizations with a particular focus on whether the sensitivity of expectations to inflation realizations increases with the level of inflation. For the sample period between April 2006 and May 2012, our...

For central banks, whose primary objective is to maintain low and sustainable inflation, understanding the determinants of food prices and their sensitivity to monetary policy is crucial for measuring the effectiveness of policy actions. This study empirically analyzes the determinants of the...

This paper develops a simple model of the market for checks in Turkey. The Central Bank controls the lump-sum amount that the drawee banks are legally responsible to pay per bad check. An increase in this amount is believed to support real economy. I show that banks will tend to restrict the...