Monetary policy set by the exchange rate and interest rates (Berument, 2007, J of macroeconomics). Exchange rate movements affects different prices differently (Berument, 2002, “Exchange Rate and the Dynamics of Turkish Inflation”, in Crises and IMF Policies eds.¨Omer Faruk Colak, Alkim Yayinevei) and interest rates movements affects different prices differently (Balke and Wynne“The Relative Price Effects of Monetary Shocks,”, forthcoming at Journal of Macroeconomics, 2007.) One may argue that the current monetary policy should consider the exchange rate for the stability of the relative prices and thus the economy.
“The Effects of World Income on Economic Performance of African Countries”,
International Journal of Economic Perspectives Volume 1, Issue 4 in January 2008 (forthcoming) with Nildag Basak Ceylan and Bergisu Vural, might be carried out such as how the South African economy affects the regional economies.