The influence of Central Bank monetary indicators on Turkish macro-economic indicators in pre and post 2001 economic crisis

The term crisis denotes the fluctuations in the marketplace which develop unexpectedly and suddenly and are capable of high damage financially. For crisis management, several kinds of methods have been applied yet little development has been achieved. The central bank is primary for managing crisis in a country.Generally the central banks are state banks which are transformed from commercial banks which hold the right of exporting the banknotes. The central banks which are the source of all sorts of money policy have different statues now even in the most developed countries of the world. If the developed countries of the Europe are researched it will be noticed that the central banks are affiliated to the government, even they are parts of governments. In Turkey, Central Bank of Turkish Republic (TCMB) has begun to transform structurally with February 2001 crisis. In this study, I investigated the influence of monetary values on macro-economic indicators with the method of multiple regression analysis by exploiting monetary and economical data between the years 1990 ? 2009. As a conclusion of regression analysis it has been noticed that the transformation that has taken place in the structure of CBTR (TCMB) has affected positively the macro-economic indicators. That is, that the central bank is focused on price stability and independent has positive effects in terms of macro-economic indicators.Considering the positive effect that the CBTR (TCMB) has on macro-economic indicators, the independent and price stability focused new era (post 2001) has shown that the only aim of central bank should be price stability and necessary regulations need to be done to provide it with independence.Key words: CBTR (TCMB), Crisis, Multiple Regression Analysis, Structural Transformation, Price Stability