This paper assesses the effects of real depreciation on the economic performance of Turkey by considering quarterly data from 1987: I to 2001: III. The empirical evidence suggests that, contrary to classical wisdom, the real depreciations are contractionary, even when external factors like world...

In this paper, I consider forecasting from a reduced-form VAR under the zero lower bound (ZLB) for the short-term nominal interest rate. The ZLB constraint expands the number of states exponentially, making the exact computation of forecast moments infeasible. I develop a method that a) computes...

We propose a DSGE model with regime switching in the central bank's inflation target to explain inflation compensation in the UK. Taking advantage of the well-documented change in UK monetary policy to adopt inflation targeting, we estimate our model using nominal and inflation-linked Treasury...