Interest Rate Smoothing and Macroeconomic Instability under Post—Capital Account Liberalization Turkey
Bibliographic Data
| ID | 11401932 |
|---|---|
| Authors | Hasan Cömert (0000-0002-1523-9423, Middle East Technical University, corresponding author), Gökçe Akın Olçum (Sabancı Üniversitesi), A Erinç Yeldan (0000-0002-3123-4374, University of Minnesota) |
| Year | 2010 |
| Volume | 31 |
| Issue | 3-4 |
| Pages | 459-482 |
| Publication date | 2010-01-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Canadian Journal of Development Studies/Revue canadienne d études du développement (JOURNAL) |
| Journal identifiers | ISSN: 0225-5189 • E-ISSN: 2158-9100 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/02255189.2010.3673730 |
| OpenAlex | W1620888130 |
| Language | EN |
| References cited | 24 |
This paper considers the interest rate policy of the Central Bank of the Republic of Turkey (CBRT) in the post-financial liberalization and deregulation era. We find that (1) the Bank's interest rate smoothing tendency is the main determinant of its monetary policy in this period, (2) the CBRT does not seem to be responsive to the developments in real economy (output), and (3) although inflation targeting central banks are not supposed to pay attention to exchange rates, the CBRT appears to be slightly responsive to changes in real exchange rate. In answer to the question of whether there is a deeper underlying structural constraint binding the CBRT's “independence,” it seems clear that the global financial system is restricting the ability of the central banks to pursue “independent” policy objectives
Capital (architecture · Central bank · Constraint (computer-aided design · Economics · Exchange rate · Independence (probability theory · Inflation (cosmology · Inflation targeting · Interest rate · International economics · Liberalization · Macroeconomics · Market economy · Monetary economics · Monetary policy · Real interest rate · Banking stability, regulation, efficiency · Economic Theory and Policy · Global Financial Crisis and Policies
Financialization and the World Economy
Discretion versus policy rules in practice
The long twentieth century
Financial deepening in economic development
Capital Market Liberalization, Economic Growth, and Instability
Patterns of Financial Capital Flows and Accumulation in the Post-1990 Turkish Economy
The condition of postmodernity
Politics, Society and Financial Liberalization
Keynesian Macroeconomics without the LM Curve
The financialization of the American economy
| Highly cited | No |
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