Monetary policy in Turkey after central bank independence

We present an accessible narrative of the Turkish economy since its great 2001 crisis. We broadly survey economic developments and pay particular attention to monetary policy. The data suggests that the Central Bank of T
We present an accessible narrative of the Turkish economy since its great 2001 crisis. We broadly survey economic developments and pay particular attention to monetary policy. The data suggests that the Central Bank of Turkey was a strong inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal anchor is visible in the break we estimate in Taylor-type rules as well as in asset prices. We also argue that recent discrete jumps in Turkish asset prices, especially the exchange value of the lira, are due more to domestic factors. In the post-2009 period the Central Bank was able to stabilize expectations and asset prices when it chose to do so, but this was the exception rather than the rule.
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Metadaten
Author:Refet S. Gürkaynak, Zeynep Kantur, M. Anıl Taş, Seçil Yıldırım
URN:urn:nbn:de:hebis:30:3-386619
URL:http://ssrn.com/abstract=2676570
DOI:http://dx.doi.org/10.2139/ssrn.2676570
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 520
Series (Serial Number):CFS working paper series (520)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Date of Publication (online):2015/10/21
Date of first Publication:2015/10/21
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2015/12/08
Tag:CBRT; Turkey; fiscal policy; monetary policy
Issue:30 August 2015
Pagenumber:33
HeBIS PPN:368523268
Institutes:Wirtschaftswissenschaften
Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:E02 Institutions and the Macroeconomy (Updated!)
E31 Price Level; Inflation; Deflation
E52 Monetary Policy
E62 Fiscal Policy
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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