Taylor Rule in Turkey
Has the Turkey’s monetary policy been sufficiently tight? This question becomes extremely crucial especially after the Turkish politicians’ blistering attack on the central bank that have raised the concerns about the independence of Turkish central bank. Amid these concerns Turkey central bank has cut the rates twice in 2015 bringing its policy rate from 8.75% down to 7.50%.
Taking back to the question asked at the prelude, the Taylor-rule framework can be used to assess the appropriateness of...
On the Failure of Inflation Targeting
Right after the shocking rate hike by Turkish Central Bank and the elections that is thought to have removed the political risk, we began to see Turkish lira not under pressure anymore, unlike the central bank.
Firstly, let us remember the deep thoughts Turkey’s Finance Minister on the economy,
SIMSEK SAYS TURKEY ‘WON’T WASTE THIS CRISIS’ WE’LL TURN THIS CRISIS INTO AN OPPORTUNITY,’ SIMSEK SAYSOn capital outflows,
SIMSEK: TURKEY SAW INFLOWS, NOT OUTFLOWS IN LATEST PERIOD SIMSEK: I BELIEVE WE WON’T...