Inflation targeting policy and application results in Turkey

Exchange rate policy implemented in developed, developing countries in 1980s and monetary policy's failure to achieve price stability, caused mentioned countries to search another monetary policy strategy. Inflation targeting regime was first implemented by New Zealand in 1990s and successful results encouraged other countries to implement such regime. Important result obtained from implementations in recent years is the fact that inflation targeting is policy implementation reaching expected result by implementing and following many monetary policies requiring strict follow-up, determination and willingness. Therefore, it can be said that new regulations within inflation targeting implementation scope and changes in economic preferences are useful strategy target for countries. Study aims to evaluate inflation targeting strategy implemented by most countries in 1990s as another monetary policy and evaluate our country's experiences among developing countries within this framework. Study states that inflation targeting regime should be supported by alternative economic policies that is insufficient to sustain macroeconomic stability, implementation will be successful with structural measures. It was concluded that inflation targeting regime in developing countries like ours wouldn't be as successful as in developed countries.