Monetary policies implemented after the 2008 financial crisis

The accumulated problems in the US residential sector turned into a global crisis in 2008. The financial crisis has spread to the economies of industrial and developing countries through various channels of influence. In order to prevent the effects of the crisis and revive economic activities, central banks of industrial countries have turned to expansionary policy measures. On the other hand, the economies of developing countries, which exhibited a more cautious attitude, started to implement growth-supporting policies with the elimination of inflation risk. A great number of central banks have considered price stability as well as financial stability as a policy objective during post-crisis period. Conventional monetary policy instruments have failed to provide both price and financial stability. Therefore, many countries' central banks have made significant changes in policy frameworks and have used unconventional macro provisional injunctions within new policy frameworks. The Central Bank of the Republic of Turkey has also made radical changes to the policy framework since the end of 2010. Within the framework of the new policy, the CBRT has effectively used non-traditional policy instruments such as interest rate corridor, reserve option mechanism and required reserves. This study compared the policy measures implemented in Turkey before and after the global financial crisis and examined the types of changes that led to the crisis in the monetary policy.