Finansal istikrar sağlamaya yönelik optimal para politikası

The present work aims to design a monetary policy framework that focuses both on price and financial stability for the Turkey case. We use a micro-founded dynamic general stochastic equilibrium model based on the New Keynesian literature incorporating money and temporary nominal price rigidities which was developed by Clarida et al. (1999). The present work extends its framework to an open economy setup in order to analyze the case of a small open economy. The model aims to capture the recent design of monetary policy by Central Bank of Turkish Republic (CBT) which has a broader scope since it considers an inflation targeting strategy that encompasses financial stability. For this purpose, we compare the optimal levels of the relevant variables under two different cases: when CBT is targeting only price stability and when CBT is targeting both price and financial stability. The analytical results show that the optimal interest rate reacts less to the changes in inflation but more to the changes in expected inflation under the latter case. Our framework also shows that optimal interest rate reaction to the changes in financial shocks depends on the persistency of shock under the latter case. Furthermore, optimal level of financial stability gap is lower under the latter case which is highly an expected outcome. As a result of our small open economy assumption, the optimal inflation depends only on cost push shocks under the former case whereas it is also a function of the world interest rates and financial shocks under the latter case. Keywords: Optimal monetary policy, financial stability, New Keynesian economics