Three essays on the effects of the Federal Reserve Interest rate policies on the Turkish economy

his thesis, examines the effects of the monetary policies of the United States Federal Reserve (FED) on Turkey's financial markets. In particular, it addresses how the FED's interest rates, quantitative easing programs, and other monetary policy tools have influenced economic stability and financial markets in emerging economies like Turkey following the 2008 global financial crisis. The thesis consists of three sections. In all three sections, data from the period between October 2008 and December 2021 are analyzed using the Quantile Regression method. In the first section, the effects of the FED's monetary policies on the BIST 30 index are examined. Additionally, the USDindex is included as an explanatory variable in the analysis. The second section investigates the effects of the FED's monetary policies on indirect investments in Turkey. In this part, indirect investments in Turkey are used as the dependent variable, while the FED interest rate and the VIX index are the independent variables. The third section explores how the interest rate decisions of the Central Bank of the Republic of Turkey (CBRT) are influenced by the FED's monetary policies. In this section, the Consumer Price Index (CPI) is also included in the analysis. The study finds that changes in the FED's interest rates have affected Turkey's financial markets not only in terms of exchange rates and capital flows but also in terms of economic stability and financial volatility.