The main goal of monetary authority is to create a stable output and price level in the economy. Policies to be used depend upon the relative weights of above goals for the monetary authority. Also, the expectations of other economic institutions are important for policy determination. Within...

According to Rogoff, economic variables may fluctuate due to changes in economic policies. In the long run, economic policies result in increases in fluctuations in inflation rate without increasing average outp level. From the perspective of Rogoff, problems regarding inflation instability can...

Since two main principles of the monetary policy are credibility and transparency, central banks aim to develop long-run policies. However, contemporary monetary policy approach requires that central banks are responsible for developing short-run stability policies as well. Within this context,...

In this study, the monetary and exchange rate policies followed by the Central Bank of Turkey (CBT) in the period between 1990 and 2000 are examined with the help of anchors. The CBT executed the monetary policies by means of monetary programs. In order to increase its credibility and reduce...

In this study, the assumption of “the weighted price elasticity of tax is a unit in the developing countries” suggested in the first studies which examine the impacts of the inflation on tax revenues, will be reevaluated for Turkey in the period of 1998-2013. We use Turkish tax and price...

The effect of monetary and fiscal policy on the output depends on the frequency of price changes. When the prices change infrequently or prices change slowly, monetary and fiscal policy have a real effects on the output. Developed countries generally have a rigid prices but developing countries...

Developed countries implemented a loose economic policy after the global crisis, which encouraged huge capital inflows into the emerging markets. After the global crisis, the Turkish banking system took advantage of such foreign capital inflows and experienced significant credit growth. This...