In this paper, we analyze the role of inflation expectations in inflation dynamics. The hike in inflation in Turkey following the exchange rate shock in 2018 provides an interesting period to analyze whether the sensitivity of inflation to its main determinants, including expectations, has...

We examine the predictive power of real time linear monetary models with possible nonlinear adjustment in forecast errors for the GBP/USD exchange rates. Real time revisions of UK and US monetary aggregates and output are significant; therefore the use of final data on fundamentals in...

Using an extensive firm-level database that combines balance sheet information, social security registry and customs data, we examine whether the relationship between the exchange rate and exports change with the degree of labor-intensity of production. The results based on manufacturing firms...