FLEXIBILITY OF INFLATION TARGETING IN THE HASSLE AGAINST CRISIS

Abstract

Author(s): Mehmet Ozan C?NEL, Devrim KARADEM?R

Living intertwined with the crisis in the process of Turkey’s economy from the 1970s to the present, for the first time adopted a new approach to economic policy decisions of January 24, 1980, the export-oriented industrialization policy was implemented in the next period. Decree No. 32 provided the economy with financial liberalization, entered into a new and serious crisis in 1984, then 5 April decisions were taken. Southeast Asia in 1997 and 1998 Russian Crises and the 1999 Marmara Earthquake and then exposed to a new crisis, Turkey’s economy, which the IMF on December 9, 1999 as a result has made a new Stand-by Agreement. After the November 2000 and the February 2001 Crises, the “Transition to Strong Economy Program (TSE)” has started the application. Implicit Inflation Targeting initially between the years 2002-2005 in order to ensure price stability in the said process has been adopted. Following acquisition of the success of a particular intended as inflation has started to open from 2006 onwards.

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