Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123222 
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper No. 5582
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
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.
Subjects: 
Turkey
CBRT
monetary policy
fiscal policy
JEL: 
E52
E62
E31
E32
E02
Document Type: 
Working Paper
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