Central Bank of Republice of Turkey independence and 2008 after the global financial crisis,CBRT 's the apply evaluation of new monetary policy instruments

Dating back to 17th century, the role central banks in the financial development of the countries has become important and the responsibility of the central banks has increased. In this course, it has become compulsory for the Banks to be independent so as to fulfil their responsibilities successfully. In my study, I have aimed to investigate how independent CBRT (TCMB) is. The independence of central banks is parallel with their success in monetary policies they apply. After the Global Economic Crisis in 2008, Central Banks regarded the financial stability as another essential target beside the price stability which was their main goal. In my study, I have evaluated the result of the new instruments of policy which CBRT (TCMB) put into practice after the Global Crisis in 2008 along with the independence of CBRT (TCMB). In 2001, CBTR gained a worldwide standard legal freedom with the law, 4651. However, especially as a result of the tension with the political administration of the country in recent years, the abstaining position of the Bank in using its instruments of policy means that the complete freedom of the Bank has not been practically realized yet even though it is guaranteed by the laws. After the Global Economic Crisis in 2008, CBTR made some changes to enhance the effectivity of the traditional monetary policy and besides, it developed new instruments of monetary policies. The main instruments used by the Bank can be listed as, policy interest, interest rate corridor, compulsory considerations and ROM and liquidity. The Bank has achieved important developments in economy by using the new instruments it has since 2008. However, it can be observed that the bank has not been able to use the policy interest and interest rate corridor instruments because of the outer interferences to its own policies recently. Over devaluation of the TL and miserable failure in reaching the target inflation rate indicates that CBTR has not been successful enough in monetary policies yet.