We study the trilemma conguration of the Turkish economy for the period between 2002 and 2012. The paper starts by empirically testing the Mundell-Fleming theoretical concept of an \impossible trinity" (trilemma) for Turkey, following Aizenman, Chinn and Ito (ACI, 2008). This includes...

[TR] Kuresel finansal krizin ardindan, merkez bankalarinin fiyat istikrarinin yani sira finansal istikrari da gozetmeleri farkli politika araclarinin kullanimini gerekli kilmistir. Turkiye Cumhuriyet Merkez Bankasi tarafindan son donemde kullanilan politika araclarindan bir tanesi de Ek Parasal...

[TR] Kuresel finansal krizin ardindan, fiyat istikrarini saglamanin yani sira finansal istikrara da katki yapan bir merkez bankaciligi cercevesi akademisyenler ve politika yapicilar arasinda tartisilmaya baslanmistir. Turkiye Cumhuriyet Merkez Bankasi tarafindan son donemde uygulamaya konulan...

Reserve Options Mechanism (ROM), which is the option to hold FX or gold reserves in increasing tranches in place of Turkish Lira reserve requirements of Turkish banks, was designed and launched by the Central Bank of the Republic of Turkey (CBRT). ROM is a tool unique to the CBRT and it is aimed...

It is a well-known fact that there is a strong relationship between bank credit and economic activity. Thus, it is a reasonable question whether credit data can be used in nowcasting GDP growth. It is important for policymakers to make on-time decisions with the most available data. Most...

The shock waves of the 2008-09 global financial crisis and the 2011-12 Eurozone debt crisis hit emerging markets from the trade, the finance and the expectations channels. We focus on the finance channel in this paper. We first discuss the challenges arising from capital flow volatility in...

We look at market discipline in the Islamic deposit market of Turkey for the period after the 2000 crisis. We find support for quantity based disciplining of Islamic banks through the capital ratio. The evidence for price disciplining is, however, less convincing. In addition, we also look at...

Since the outbreak of the global crisis in mid 2007, there has been an extensive discussion on root causes. Some blame the greed and corruption of financial actors. Others put the blame on central bankers for easy money or regulators who remained idle as too much risks accumulated in financial...