This paper examines the performance of Turkey's inflation targeting (IT) experience. We find the IT regime to be an effective framework. Our judgment is based on three broad conclusions supported by empirical analyses. First, fiscal stability is an effective tool for a successful monetary...

In 2002, the the Central Bank of Turkey (CBT) shifted to an implicit inflation targeting framework (IIT) that encompassed the most of core attributes of an official IT regime. Successful disinflation and progress in the policy environment led to the introduction of full-fledged IT in 2006 that...