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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. 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.
    2. 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.
    3. Enrique G. Mendoza & Marco E. Terrones, 2008. "An anatomy of credit booms: evidence from macro aggregates and micro data," International Finance Discussion Papers 936, Board of Governors of the Federal Reserve System (U.S.).
    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," Rivista di Politica Economica, SIPI Spa, issue 4, pages 11-36, October-D.
    6. 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.
    7. Aaron Tornell & Frank Westermann (ed.), 2005. "Boom-Bust Cycles and Financial Liberalization," MIT Press Books, The MIT Press, edition 1, volume 1, number 9780262201599, December.
    8. Selva Demiralp & Hakan Kara & Pýnar Özlü, 2011. "Monetary policy communication under inflation targeting: Do words speak louder than actions?," Koç University-TUSIAD Economic Research Forum Working Papers 1128, Koc University-TUSIAD Economic Research Forum.
    9. 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.
    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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