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New Monetary Policy Approach in Turkey Against Financial Systemic Risk

Author

Listed:
  • Ranat Eskinat

    (Anadolu University, Eskisehir, Turkey)

Abstract

This paper explains the underlying motivation for the decision of the Central Bank of the Republic of Turkey (CBRT) to adopt a flexible monetary policy since 2010. In this context the paper provides an overview of the framework and summarizes the initial results. Specifically, the paper begins by giving a historical perspective to provide motivation, then presents an overview of the key changes to the framework, including both monetary and macro-prudential instruments. Lastly, the study lays out a discussion of the initial outcomes owing to the changes to the new monetary policy framework.

Suggested Citation

  • Ranat Eskinat, 2014. "New Monetary Policy Approach in Turkey Against Financial Systemic Risk," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 12(2), pages 201-214.
    • Handle: RePEc:seb:journl:v:12:y:2014:i:2:p:201-214
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    File URL: http://www.asecu.gr/Seeje/issue23/issue23-eskinat.pdf
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    References listed on IDEAS

    as
    1. Selva Demiralp & Hakan Kara & Pinar Ozlu, 2011. "Monetary Policy Communication Under Inflation Targeting : Do Words Speak Louder Than Actions?," Working Papers 1118, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    2. Enrique G. Mendoza & Marco E. Terrones, 2008. "An Anatomy Of Credit Booms: Evidence From Macro Aggregates And Micro Data," NBER Working Papers 14049, National Bureau of Economic Research, Inc.
    3. Mr. Selim A Elekdag & Mr. Harun Alp, 2011. "The Role of Monetary Policy in Turkey During the Global Financial Crisis," IMF Working Papers 2011/150, International Monetary Fund.
    4. Jeanne, Olivier & Korinek, Anton, 2019. "Managing credit booms and busts: A Pigouvian taxation approach," Journal of Monetary Economics, Elsevier, vol. 107(C), pages 2-17.
    5. Carmen M. Reinhart, 2011. "A Series of Unfortunate Events: Common Sequencing Patterns in Financial Crises," 'Angelo Costa' Lectures Serie, SIPI Spa, issue Lect. XII.
    6. Selim Elekdag & Yiqun Wu, 2013. "Rapid Credit Growth in Emerging Markets: Boon or Boom-Bust?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(5), pages 45-62, September.
    7. A. Hakan Kara, 2012. "Monetary Policy in Turkey After the Global Crisis," Working Papers 1217, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    8. Aaron Tornell & Frank Westermann, 2005. "Boom-Bust Cycles and Financial Liberalization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262201593, December.
    9. Mimir Yasin & Sunel Enes & Taşkın Temel, 2013. "Required reserves as a credit policy tool," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 823-880, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Systemic risk; Monetary policy; Financial stability; Macro-prudential policy; Central Bank of the Republic of Turkey;
    All these keywords.

    JEL classification:

    • 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
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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