Turkish economy in the aftermath of the global crisis has faced an unprecedented divergence between domestic and external demand. Increasing risks in the face of surging short-term capital inflows, deteriorating current account deficit and rapid credit growth have called for an alternative...

The primary goal of this study is to introduce monetary analysis for the Turkish economy in the light of empirical evidences that demonstrate the importance of this analysis for the economy. In the study we also focus on the implication of persistent money supply shocks, particularly shocks that...

In this study we attempt to shed some light on the theoretical and empirical discussions regarding the role of monetary aggregates in monetary policy formulations. We also assess the developments in the aftermath of the global financial crisis and emphasize the role of monetary aggregates in...

In this paper, we investigate the responsiveness of financial markets to monetary policy expectations in Turkey. According to the efficient markets hypothesis, financial markets respond to anticipated policy actions prior to a policy announcement. As a result, they are expected to respond only...

In this paper, we investigate the responsiveness of financial markets to monetary policy expectations in Turkey. According to the efficient markets hypothesis, financial markets respond to anticipated policy actions prior to a policy announcement. As a result, they are expected to respond only...

The transmission of policy decisions to financial markets is an integral part of the monetary transmission mechanism. However, one of the major problems in estimating the effect of monetary policy on asset prices is the simultaneous response of policy actions and the asset prices to each other....