Berument, HakanPasaogullari, M.2016-02-082016-02-0820030012-1533http://hdl.handle.net/11693/24364This 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 interest rates, international trade, and capital flows are controlled. Moreover, the results obtained from the analyses indicate that real exchange rate depreciations are inflationary.EnglishCurrency devaluationCurrency marketInflationInterest rateReal exchange rateEurasiaTurkeyArticle10.1111/j.1746-1049.2003.tb01009.x1746-1049