Turkey's monetary policy committed in the letters of intent offered to IMF in the period 1999-2008 and its results

The International Monetary Fund (IMF) was established to create a framework of economic cooperation to solve the problems that emerged after the Second World War. In July 1944, according to the decisions taken at the United Nations Conference held in Bretton Woods, New Hampshire, USA, in 27 December 1945, when 29 countries have signed the main contract, the IMF was established and in 1 march 1947, it started its official activities. Turkey, in times of economic crisis, has begun to benefit from the economic and technical facilities provided by the IMF. Without taking into account Turkey's initiative in 1958, until today -the first one 1961, the last one 2005- in total 19 stand-by arrangements have been made. The aim of this study, In the light of available data at hand, the monetary policies and the results of the commitments made in the letters of intent presented to the IMF regarding the stand-by arrangement, review and additional reserve demand during the period of 1999-2008; around inflation, interest rates, exchange rate, net domestic assets and net international reserves and monetary base developments evaluation. And the effects of these developments on other macroeconomic variables are also examined. As a result, despite the IMF's economic stabilization program, the November 2000 and February 2001 crises could not be prevented and early fluctuating exchange rate regime were introduced. Positive results were obtained from the economic program implemented after 2002, but no success in solving structural problems was achieved. The desired result could not be reached from the economic program implemented in 2005. As can be seen, IMF's stabilization programs have failed to solve the economic problems.