Turkey implemented an ambitious restructuring of the economy in the past several years, including the adoption of inflation targeting along with a floating exchange rate regime. Inflation came down from almost triple digits to single digits between 2001 and 2005. This particular episode of the...

This paper assesses the effectiveness of monetary policy communication of the Central Bank of Turkey (CBT) by quantifying the information content of its policy statements released right after the monthly Monetary Policy Committee meetings. First, we quantify the signal regarding the next...