Abstract:

The departure of the central banks, which is the original task of ensuring price stability in the economy, has reduced their social trust in the central banks since the 1990s, and has also increased their inflation expectations in the countries. This has led the governments to implement inflation target as a new monetary policy strategy. First, the strategy implemented in New Zealand in 1990 has given successful results, leading other countries to the target of inflation. Before implementation, a set of prior conditions must be prepared for the program to the desired goal. The economic and social structural differences in developed and developing countries can change this preparation process, while they can also affect the implementation results. In advanced countries, the inflation targeting has been very successful, causing difficulties in developing countries, especially in the transition to implementation. In Turkey, long years of instability and high chronic inflation have delayed the transition to the implementation of inflation targeting. The strategy is set to be implemented in 2006 and is set to be implemented.

Keywords: