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...

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...