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Financial Conditions Indices for the Turkish Economy

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  • A. Hakan Kara
  • Pinar Ozlu
  • Deren Unalmis

Abstract

Since the end of 2010, Central Bank of the Republic of Turkey has adopted a new policy strategy which jointly uses liquidity, credit, and interest rate policies. The new framework has increased the need to develop and monitor a broad measure of “financial conditions” index that would complement the monetary policy analysis in assessing whether the overall set of policies are restrictive or accommodative. This note seeks to fill this gap by developing financial conditions indices for Turkey using a range of monetary and financial indicators.

Suggested Citation

  • A. Hakan Kara & Pinar Ozlu & Deren Unalmis, 2012. "Financial Conditions Indices for the Turkish Economy," CBT Research Notes in Economics 1231, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    • Handle: RePEc:tcb:econot:1231
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    File URL: https://www.tcmb.gov.tr/wps/wcm/connect/cba3a9b4-55bd-4c20-a914-a9bc20057d76/EN1231eng.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-cba3a9b4-55bd-4c20-a914-a9bc20057d76-m3fw5bR
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    References listed on IDEAS

    as
    1. Adriana Soares Sales & Waldyr D. Areosa & Marta B. M. Areosa, 2012. "Some Financial Stability Indicators for Brazil," Working Papers Series 287, Central Bank of Brazil, Research Department.
    2. Mr. Andrew J Swiston, 2008. "A U.S. Financial Conditions Index: Putting Credit Where Credit is Due," IMF Working Papers 2008/161, International Monetary Fund.
    3. Esteban Gómez & Andrés Murcia & Nancy Zamudio, 2011. "Financial Conditions Index: Early and Leading Indicator for Colombia," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 29(66), pages 174-220, December.
    4. A.Hakan KARA, 2012. "Küresel kriz sonrası para politikası," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 27(315), pages 09-36.
    5. Ms. Carolina Osorio-Buitron & Ms. Filiz D Unsal & Ms. Runchana Pongsaparn, 2011. "A Quantitative Assessment of Financial Conditions in Asia," IMF Working Papers 2011/170, International Monetary Fund.
    6. Matheson, Troy D., 2012. "Financial conditions indexes for the United States and euro area," Economics Letters, Elsevier, vol. 115(3), pages 441-446.
    7. Scott Brave & R. Andrew Butters, 2012. "Diagnosing the Financial System: Financial Conditions and Financial Stress," International Journal of Central Banking, International Journal of Central Banking, vol. 8(2), pages 191-239, June.
    8. Stéphanie Guichard & David Turner, 2008. "Quantifying the Effect of Financial Conditions on US Activity," OECD Economics Department Working Papers 635, OECD Publishing.
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    Cited by:

    1. Coşkun Akdeniz, 2021. "Construction of the Monetary Conditions Index with TVP-VAR Model: Empirical Evidence for Turkish Economy," Springer Books, in: Burcu Adıgüzel Mercangöz (ed.), Handbook of Research on Emerging Theories, Models, and Applications of Financial Econometrics, edition 1, pages 215-228, Springer.
    2. Wagner Piazza Gaglianone & Waldyr Dutra Areosa, 2016. "Financial Conditions Indicators for Brazil," Working Papers Series 435, Central Bank of Brazil, Research Department.
    3. Umit Bulut, 2016. "Do Financial Conditions have a Predictive Power on Inflation in Turkey?," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 621-628.

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