Recently, Central Bank of Turkey designed new policy instruments in order to reduce the adverse impact of volatile capital flows on macroeconomic and financial stability. This note is aims to introduce one of the new instruments: “Reserve Option Mechanism” (ROM). We describe the transmission...

[TR] Bu not, kredi dinamikleri ile ekonomik buyume arasindaki konjonkturel iliskinin anlasilmasina katkida bulunmak amaciyla, “kredi ivmesi” kavramini tanitarak Turkiye icin hesaplamaktadir. Ozellikle (2011- 2012 yillari gibi) kredilerin artis hizinda onemli degisimler yasanan donemleri...

This study presents a cross-country analysis of credit growth and draws implications for Turkey. Similar credit deepening phases in other countries suggest that an average of 15 percent annual credit growth would be reasonable and healthy in the medium-term.

[TR] 2011 yilinin ikinci yarisinda enflasyonda hizli bir yukselis gozlenmesi ve enflasyonun uzunca bir muddet hedefin belirgin olarak uzerinde seyretmesi enflasyon beklentilerinin yakindan izlenmesini gerektirmektedir. Bu calisma, beklenti olusumunun zaman icindeki seyrini inceleyerek anilan...

The procyclical behavior of credit supply amplifies the business cycles. One of the aims of the traditional macro-prudential policies is to smooth the business cycle fluctuations by mitigating the excessive volatility in the risk appetite of financial intermediaries. This study shows that...

Economic policies focusing on macro-financial risks in Turkey attribute special emphasis on current account developments. In this context, quantifying the role of cyclical factors in driving current account deficit is crucial for the design of an appropriate policy response against current...

Since the end of 2010, Central Bank of the Republic of Turkey has adopted a new policy strategy which jointly uses liquidity, credit, and interest rate policies. The new framework has increased the need to develop and monitor a broad measure of “financial conditions” index that would...

Post-crisis spillovers and heightened capital flows have triggered a search for alternative monetary policy frameworks, especially for small open emerging economies. The Turkish experience since end-2010 sets out an interesting case in this respect. Faced with extreme volatility in cross-border...