Unconventional monetary policies and central bank practices

The 2007 – 2008 crisis, which emerged due to the failure to repay loans that were given as a result of incorrect arrangements, especially in the USA, and similar reasons, spread rapidly throughout the world. With the monetary policies of the central banks in the world not being able to affect the process positively, non-traditional policies have emerged. These unconventional policies, which were first put into practice by developed countries, started to be implemented in developing countries. In particular, the Fed, BoJ, and ECB, which put into practice these policies have also significant impacts on Turkey. Our country has created new monetary policy tools to tackle these problems. New arrangements such as the interest rate corridor, reserve requirements, and the reserve option mechanism have been tried to be adapted into the economic structure. The monetary expansion policy implemented by developed countries has disrupted the financial stability of developing countries, and as a result of this, they have developed new monetary policy instruments that will be most suitable for them.