01745cas a2200265 a 4500 AALejournalIMF008376 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846867 1018-5941 BD-DhAAL BD-DhAAL Gelos, R. Would "Cold Turkey" Work in Turkey? / R. Gelos, Alessandro Prati, Oya Celasun. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Persistently high inflation rates have led many to believe that inflation in Turkey has become "inertial," posing an obstacle to disinflation. We assess the empirical validity of this argument. We find that the current degree of inflation persistence in Turkey is lower than in Brazil and Uruguay prior to their successful stabilization programs. More significantly, expectations of future inflation are more important than past inflation in shaping the inflation process, providing little evidence of "backward-looking" behavior. Using survey data, we find that inflation expectations, in turn, depend largely on the evolution of fiscal variables. Mode of access: Internet Celasun, Oya. Prati, Alessandro. IMF Working Papers; Working Paper ; No. 2003/049 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/049/001.2003.issue-049-en.xml IMF e-Library