Monetary mechanism in a high inflation environment

This study examines the basic features of the monetary transmission mechanism in Turkey in the context of a small aggregate macroeconomic model. The model describes how agents set wages and prices in a high inflation economy. The importance of coordination between fiscal and monetary policies is also highlighted.

The full article is available from the website of the Central Bank of the Republic of Turkey.

http://www.tcmb.gov.tr/frame/sub_arateblig_e.html

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