Abstract
The mean field like gauge invariant variational method formulated recently, is applied to a topologically massive QED in 3 dimensions. We find that the theory has a phase transition in the Chern Simons coefficient $n$. The phase transition is of the Berezinsky-Kosterlitz - Thouless type, and is triggered by the liberation of Polyakov monopoles, which for $n>8$ are tightly bound into pairs. In our Hamiltonian approach this is seen as a similar behaviour of the magnetic vortices, which are present in the ground state wave functional of the compact theory. For $n>8$, the low energy behavior of the theory is the same as in the noncompact case. For $n<8$ there are no propagating degrees of freedom on distance scales larger than the ultraviolet cutoff. The distinguishing property of the $n<8$ phase, is that the magnetic flux symmetry is spontaneoously broken.
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