Cilt 4, Sayı 1, Sayfalar 223 - 244 2015-03-09

A MODIFIED TAYLOR RULE FOR THE CENTRAL BANK OF TURKEY* (CBRT): 2003-2012

Ç. Levent USLU [1] , Ahmet ÖZÇAM [2]

133 273

In this paper we investigated whether the Central bank of Turkey (CBRT) followed a strict Taylor Rule during 2003-2012. We found that it has not, due to different reasons in different periods: inflation targeting policy before the global crisis and trying to achieve the joint targets of price and financial stabilities after the crisis. Furthermore we tried to formulate a modified Taylor Rule which fitted the actual courseof nominal interest rate during 2010-2012 as closely as possible. In contrast with our estimated modified Taylor Rule which indicated that the nominal interest rates were increased only by 0.49% in practice during 2010-2012, the estimated standard Taylor Rule suggested an increase of the nominal interest rates by 1.23% during 2008-2010 for each percentage change in the inflationary gap. Hence, this displayed a loose monetary policy with respect to the strict Taylor Rule. As a matter of fact, in January 2014, CBRT had to increase its policy interest rate down from 4 % up to 10 %
In this paper we investigated whether the Central bank of Turkey (CBRT) followed a strict Taylor Rule during 2003-2012. We found that it has not, due to different reasons in different periods: inflation targeting policy before the global crisis and trying to achieve the joint targets of price and financial stabilities after the crisis. Furthermore we tried to formulate a modified Taylor Rule which fitted the actual courseof nominal interest rate during 2010-2012 as closely as possible. In contrast with our estimated modified Taylor Rule which indicated that the nominal interest rates were increased only by 0.49% in practice during 2010-2012, the estimated standard Taylor Rule suggested an increase of the nominal interest rates by 1.23% during 2008-2010 for each percentage change in the inflationary gap. Hence, this displayed a loose monetary policy with respect to the strict Taylor Rule. As a matter of fact, in January 2014, CBRT had to increase its policy interest rate down from 4 % up to 10 %. Key Words: Taylor Rule, Reaction Function Of Central Bank, Modified Taylor Rule, Turkey
Taylor Kuralı, Merkez Bankası Tepki Fonksiyonu
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Birincil Dil TR
Konular
Dergi Bölümü Makaleler
Yazarlar

Yazar: Ç. Levent USLU
E-posta: cluslu@gmail.com

Yazar: Ahmet ÖZÇAM
E-posta: aozcam@yeditepe.edu.tr

Bibtex @ { ksuiibf125955, journal = {Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi}, issn = {2146-5908}, address = {Kahramanmaraş Sütçü İmam Üniversitesi}, year = {2015}, volume = {4}, pages = {223 - 244}, doi = {}, title = {A MODIFIED TAYLOR RULE FOR THE CENTRAL BANK OF TURKEY* (CBRT): 2003-2012}, language = {tr}, key = {cite}, author = {USLU, Ç. Levent and ÖZÇAM, Ahmet} }
APA USLU, Ç , ÖZÇAM, A . (2015). A MODIFIED TAYLOR RULE FOR THE CENTRAL BANK OF TURKEY* (CBRT): 2003-2012. Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4 (1), 223-244. Retrieved from http://iibfdergisi.ksu.edu.tr/issue/10268/125955
MLA USLU, Ç , ÖZÇAM, A . "A MODIFIED TAYLOR RULE FOR THE CENTRAL BANK OF TURKEY* (CBRT): 2003-2012". Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 4 (2015): 223-244 <http://iibfdergisi.ksu.edu.tr/issue/10268/125955>
Chicago USLU, Ç , ÖZÇAM, A . "A MODIFIED TAYLOR RULE FOR THE CENTRAL BANK OF TURKEY* (CBRT): 2003-2012". Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 4 (2015): 223-244
RIS TY - JOUR T1 - A MODIFIED TAYLOR RULE FOR THE CENTRAL BANK OF TURKEY* (CBRT): 2003-2012 AU - Ç. Levent USLU , Ahmet ÖZÇAM Y1 - 2015 PY - 2015 N1 - DO - T2 - Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi JF - Journal JO - JOR SP - 223 EP - 244 VL - 4 IS - 1 SN - 2146-5908-2536-4464 M3 - UR - Y2 - 2017 ER -
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