CBRT monetary policy after 2008 global crisis

The world economy has undergone a serious financialization in the last 30 years. With the effect of this financialization, financial crises have been experienced frequently. These financial crises have seriously affected the economies of developed and developing countries and countries have tried to direct this situation through monetary policies. The financial crisis that started in a country did not only stay in that country, but also spread to other countries and negatively affected the economies of those countries. The crisis, which emerged in the ABD as a result of the bursting of the housing bubble in 2007, spread to other developed and developing countries in a short time and gained a global dimension. Central banks of developed countries that wanted to control the crisis provided ample liquidity to the market by implementing expansionary monetary policy. Abundant liquidity formed in international financial markets was transferred to developing countries with relatively high interest rates. This situation led to a significant expansion in the credit volume and increased volatility in the exchange rate in Turkey. In addition, the increase in domestic demand despite the contraction in export volume increased the current account deficit and caused risks to financial stability. The Central Bank of the Republic of Turkey, on the other hand, developed a new monetary policy strategy at the end of 2010 in order to prevent risks in financial markets. Within the framework of this strategy, new monetary policy instruments have been started to be used with the aim of price stability and financial stability. The aim of the study is to evaluate the monetary policy tools and the strategy implemented after the 2008 global crisis and to analyze the results. In this context, the 2008 global crisis was mentioned in the study, the effects of the crisis on the ABD economy and the Turkish economy were examined, the measures taken by the ABD economy against the crisis were explained, and the policies implemented by the TCMB before and after the crisis were examined