The determinants of the success of the inflation targeting: The case of Turkey

Inflation targeting strategy which has been improved from developing countries with the aim of providing price stability and controlling high inflation rates still maintains its importance today. The success of the inflation targeting is more important than inflation targeting to provide confidence in the market. In this study, the determinants of the success of the inflation targeting in Turkey were evaluated via using of ARDL Boundary Test with the help of quarterly data from 2002 to 2016. The result of the study shows the most important factor that affects the success of the inflation targeting is fiscal dominance which should be diciplined in order to achieve in this regime.