Abstract:

Turkey has been negatively affected by the recent global crisis. The monetary policy implemented by the Central Bank of the Republic of Turkey (CBRT) have helped to defend financial stability and to boost confidence in financial markets. During the recent crisis, the economic agents have paid more attention to central bank balance sheets as a indicator of the development of monetary policy. After reviewing the evolution of monetary policy worldwide and the key features of central bank balance sheet, this paper mainly focuses on how policy responses transformed the analytical balance sheet of the CBRT and the money supply measures for the period 2007-2011.

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