This article assesses the effectiveness of a novel macroprudential tool – the reserve option mechanism (ROM) – which Turkey's central bank developed during the post-2008 period and has employed to control the risk associated with excessive capital flows. We assess how capital flows have...

A coherent method to measure the effectiveness of a monetary policy improves the monetary authority's management capacity and renders the possibility of applying sound policies prior to and during a crisis. The trend in employing complicated and ambiguity-bearing unconventional monetary tools in...

The empirical evidence suggests that openness decreases the effect of monetary policy on output, however the effect on prices is not statistically significant. In this study these predictions are tested over the open economy of Turkey for quarterly data from 1987:1 to 2001:1. This study assesses...

This study examines the relationship between inflation and inflation uncertainty in the G-7 countries for the period from 1957 to 2001. The causality between the inflation and inflation uncertainty is tested by using the Full Information Maximum Likelihood Method with extended lags. Our results...