Turkish Experience With Implicit Inflation Targeting
This paper describes the challenges faced during the implementation of implicit inflation targeting in Turkey and evaluates the transition process to full-fledged inflation targeting. Using this background, the paper draws lessons for similar countries considering inflation targeting as a monetary policy regime. We argue that, the strategy of starting inflation targeting with an “implicit” version and gradually converging to full-fledged targeting can be a viable option when certain set of conditions is not satisfied. We conjecture, however, that implementing a “light” version—namely implicit inflation targeting—does not necessarily mean that the system would be exempt from all the prerequisites. In the Turkish case, for example, institutional independence and political support seem to have been the fundamental conditions for initiating the process of inflation targeting.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (90 312) 507 5000
Fax: (90 312) 507 5640
Web page: http://www.tcmb.gov.tr
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.:
- Fatih Ozatay, 2005. "Monetary Policy Challenges for Turkey in European Union Accession Process," Working Papers 0511, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Carmen M. Reinhart & Kenneth S. Rogoff & Miguel A. Savastano, 2003.
"Addicted to Dollars,"
NBER Working Papers
10015, National Bureau of Economic Research, Inc.
- Olcay Yucel Emir & Fatih Ozatay & Gulbin Sahinbeyoglu, 2005. "Effects of US Interest Rates and News on the Daily Interest Rates of a Highly Indebted Emerging Country : Evidence from Turkey," Working Papers 0508, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Zelal Aktas & Neslihan Kaya & Umit Ozlale, 2005. "The Price Puzzle in Emerging Markets : Evidence from the Turkish Economy Using Model Based Risk Premium Derived from Domestic Fundamentals," Working Papers 0502, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Oya Celasun & R. Gaston Gelos & Alessandro Prati, 2004.
"Obstacles to disinflation: what is the role of fiscal expectations?,"
CEPR;CES;MSH, vol. 19(40), pages 441-481, October.
- Gaston Gelos & Alessandro Prati & Oya Celasun, 2004. "Obstacles to Disinflation; What is the Role of Fiscal Expectations?," IMF Working Papers 04/111, International Monetary Fund.
- Olivier Blanchard, 2004. "Fiscal Dominance and Inflation Targeting: Lessons from Brazil," NBER Working Papers 10389, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:tcb:wpaper:0603. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ozlem Ekmekciler Ramalho Rocha)or (Ilker Cakar)
If references are entirely missing, you can add them using this form.