Central Banking in Making during the Post-Crisis World and the Policy-Mix of the Central Bank of the Republic of Turkey
After the global crisis, one of the most important lessons learned by central banks appears to be the vital importance of financial stability along with price stability. Hence, finding solutions to how to incorporate the financial stability objective in the pursuit of monetary policy without diluting the price stability objective has started to be heavily discussed by academics and policy makers. Accordingly, it has started to be debated that the using of only short-term interest rates as the main policy tool may not be enough to maintain price stability and financial stability at the same time. Interest rates that provide price stability and financial stability can be different and this necessitates central banks to use multiple policy tools. In view of this, the Central Bank of the Republic of Turkey adopted a new monetary policy framework called the new policy mix in which multiple tools are employed to achieve multiple objectives. In this framework, the required reserves ratios, weekly repo rates, interest rate corridor, funding strategy and other macro prudential tools are jointly used as complementary tools for the credit, interest rate and liquidity policies to achieve the price and financial stability objectives concurrently. This new monetary policy adopted in Turkey also provides an interesting case study to assess how a country came up with novel policies to account for its country specific characteristics.
Volume (Year): 2 (2013)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: Bulevar Svetog Petra Cetinjskog br. 6, 81000 Podgorica|
Phone: +382 20 403 136
Fax: +382 20 664 029
Web page: http://www.cbcg.me/eng/index.php?bl=journal
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arif Oduncu & Yasin Akcelik & Ergun Ermisoglu, 2013. "Reserve Options Mechanism and FX Volatility," Working Papers 1303, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Claudio Borio, 2011. "Central banking post-crisis: What compass for uncharted waters?," BIS Working Papers 353, Bank for International Settlements.
- Adrian, Tobias & Song Shin, Hyun, 2010.
"Financial Intermediaries and Monetary Economics,"
Handbook of Monetary Economics,in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 12, pages 601-650
- Tobias Adrian & Hyun Song Shin, 2009. "Financial intermediaries and monetary economics," Staff Reports 398, Federal Reserve Bank of New York.
- Erdem Basci & Hakan Kara, 2011. "Financial Stability and Monetary Policy," Working Papers 1108, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Erdem Başçı & Hakan Kara, 2011. "Finansal istikrar ve para politikası," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 26(302), pages 9-25.
- Yasin Akcelik & Ergun Ermisoglu & Arif Oduncu & Temel Taskin, 2012. "Ek Parasal Sikilastirma’nin Doviz Kurlari Uzerindeki Etkisi," CBT Research Notes in Economics 1230, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Rose, Andrew K., 2007. "A stable international monetary system emerges: Inflation targeting is Bretton Woods, reversed," Journal of International Money and Finance, Elsevier, vol. 26(5), pages 663-681, September.
- Andrew K. Rose, 2006. "A Stable International Monetary System Emerges: Inflation Targeting is Bretton Woods, Reversed," NBER Working Papers 12711, National Bureau of Economic Research, Inc.
- Yasin Akcelik & Erdem Basci & Ergun Ermisoglu & Arif Oduncu, 2013. "The Turkish Approach to Capital Flow Volatility," Working Papers 1306, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Paul Bloxham & Christopher Kent & Michael Robson, 2010. "Asset Prices, Credit Growth, Monetary and Other Policies: An Australian Case Study," RBA Research Discussion Papers rdp2010-06, Reserve Bank of Australia.
- Paul Bloxham & Christopher Kent & Michael Robson, 2011. "Asset Prices, Credit Growth, Monetary and Other Policies: An Australian Case Study," NBER Working Papers 16845, National Bureau of Economic Research, Inc.