Coordination of public debt management with monetary and fiscal policies: Instance of Turkey

Keynesian policies, implementing with the Great Depression of 1929, caused successful outcomes in the crisis period, but by the post-crisis resulted in extravagant policies followed increase in budget deficits and hence public debt stock. The fiscal policy, because of the increased debt stock of the economy is inadequate to manage economic influences, has led to disagreements that public debt management, which was previously seen as an instrument of fiscal policy should be carried out as an independent policy. It is assumed that there is an important relationship between public debt sustainability and effective debt management policy with economic stability. For this reason, acceptance that public debt management policies is a independent policy, coordination with the other economic policies and setting the macroeconomic framework are crucial. The aim of this study is to ensure coordination with the monetary and fiscal policy of public debt management, which is seen as a independent policy, and to analyze the positive and negative aspects of the regulations made for coordination with the monetary and fiscal policy of public debt management in Turkey. In this direction, public debt management, coordination of public debt management with monetary and fiscal policy, the importance of this coordination, the problems arising from lack of coordination and the coordination between policies in Turkey have been examined. Keywords: Public Debt Management, Fiscal Policy, Monetary Policy,Coordination Between Policies