Monetary policy in Turkey after Central Bank independence

Refet Gürkaynak, Zeynep Kantur (), M. Anil Tas and Secil Yildirim

No 520, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: We present an accessible narrative of the Turkish economy since its great 2001 crisis. We broadly survey economic developments and pay particular attention to monetary policy. The data suggests that the Central Bank of Turkey was a strong inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal anchor is visible in the break we estimate in Taylor-type rules as well as in asset prices. We also argue that recent discrete jumps in Turkish asset prices, especially the exchange value of the lira, are due more to domestic factors. In the post-2009 period the Central Bank was able to stabilize expectations and asset prices when it chose to do so, but this was the exception rather than the rule.

Keywords: Turkey; CBRT; monetary policy; fiscal policy (search for similar items in EconPapers)
JEL-codes: E02 E31 E32 E52 E62 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ara, nep-cba, nep-cwa, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Monetary Policy in Turkey after Central Bank Independence (2015)
Working Paper: Monetary Policy in Turkey after Central Bank Independence (2015)
Working Paper: Monetary Policy in Turkey after Central Bank Independence (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:520

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