TCMB exchange rate and credit channel: an application between 2010 to 2018

Turkish Central Bank is to intervene in the market by various means to ensure price stability and financial stability. Turkish Central Bank is using various tool to make adjustments for transferred to the real market system is called the monetary transmission mechanism. Following 2008 Global Financial Crisis in the car and then to address the fundamental policy failure such as price and financial stability Central Bank of the Republic of Turkey to ensure the stability of macro-prudential policies were next adopted. In this context, the credit channel and exchange rate channel, one of the prominent transfer mechanisms, were taken into consideration as the beginning of 2010, when macro prudential policies were implemented. The purpose of the study is the effectiveness of the exchange rate and credit channels that the policies of the Turkish Central Bank in Turkey is to test its success in the transfer to the real market. In this context, monthly frequency data of January 2010-December 2018 period were analyzed by VAR model using E-Views program. According to the results of the exchange rate channel it works entirely in Turkey and the credit channel has reached the conclusion that partially works.