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Normalization of Monetary Policy After Global Crisis: What is Normalization?

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  • N. Hande SEVGİ

Abstract

Global financial crisis was not only created a chaos but also changed the contemporary monetary policy. The global economy faced with a shift on policy tools because by starting the liquidity trap that American economy faced forced the authorities to find new strategies. Policy makers have started to consider financial stability with price stability and to reshape monetary policy they created new policy tools. The descried tools for new exit ways of powerful central banks especially Fed, helped to overcome the global crisis while bringing new issues. Under the circumstances Fed started a normalization process for monetary policy. Due to the gravity of Fed, other central banks had to adopt the current stream. In this conjuncture Central Bank of the Republic of Turkey has changed the policy tools correspondingly. The purpose of this paper is to evaluate the change in the monetary policy path of Fed and ECB with the behavioral pattern of Central Bank of the Republic of Turkey with “New Normalization” concept

Suggested Citation

  • N. Hande SEVGİ, 2017. "Normalization of Monetary Policy After Global Crisis: What is Normalization?," Fiscaoeconomia, Tubitak Ulakbim JournalPark (Dergipark), issue 3.
    • Handle: RePEc:fis:journl:170309
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    1. Beck, Guenter W. & Wieland, Volker, 2017. "How to normalize monetary policy in the Euro area," IMFS Working Paper Series 115, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
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    More about this item

    Keywords

    Monetary Policy; Central Bank; Unconventional Monetary Tools;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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