Economic and financial integration has reshaped the monetary policy frameworks and transmission channels in the emerging market economies (EMEs) over the past two decades. Economic and financial linkages have become stronger, resulting in greater synchronization of business cycles across...

Heightened volatility in cross-border capital flows has increased exchange rate volatility across emerging markets as well as in advanced economies, setting the stage for more active management of currencies. Traditionally, foreign exchange rate intervention has been the primary tool to address...

An optimal dynamic fiscal loss model for Turkey is presented in this note. The model is used as a benchmark to gauge the success of potential simple fiscal rules. Optimal linear and non-linear rules are shown to perform well