The relationship between inflation and interest in the context ofmonetary policy after 2000 in Turkey

Inflation is determined by many factors, as well as the interest rate.Is the relationship between inflation and interest a one-way street?In the analysis period, it is aimed to examine the relationship between interest rate and inflation rate in the context of monetary policy and to reveal the effectiveness of monetary policy. The analysis period covers the years 2001 to 2018. In the study, the relationship between inflation and interest rate determined by monetary policy in Turkey in the said period was revealed by using some econometric tests, especially the Granger Causality Test, as well as the descriptive research method. In the thesis study, with the help of econometric tests, it has been concluded that the increase in inflation causes interest rate increases and an inverse relationship is also valid.