Price stability and financial stability: An analysis on Turkey economy

Along with the global financial crisis that took place in 2008, as well as price stability, financial stability has also come to the forefront. After this crisis, it is understood that policy implementations to secure price stability are not enough for secure financial stability. Therefore, central banks has changed their policy tools to secure financial stability along with the price stability. Central Bank of The Republic of Turkey (CBRT) has also changed monetary policy strategy and has started to use unconventional monetary policy tools as of November 2010. Purpose of this study is to test effects and success of monetary policies which has implemented using unconventional monetary policy tools by CBRT, to secure price and financial stability. For this purpose, the values of macroeconomic variables, which are indicators for price stability and financial stability and which are thought to have an effect on them, are analyzed with the values between 2011-2015 and the results are evaluated with the help of tables.