Abstract:

As a result of not being a remedy of the Keynesian Policies, that is based on fiscal measures, to the inflation problem which was occured by the petrol crisis of 1973 the monetarist policies began to have much role. And then the idea of an independent central bank, that can provide the price stability, was accepted. For providing the price stability, the central bank don’t have to be under the effect of politics and also the other macro economic performance indicators have to be good in addition to the fiscal discipline. This can be realized by determining and applying the monetary and fiscal policies in a harmony with the aim of providing economic stability. In this study, the monetary policy and the independence of The Central Bank of The Republic of Turkey (Bank) are examined considering with the fiscal discipline and the strategy of inflation targeting. The situation of the independence of the Bank is evaluated according to the various indicators in the historical process. In the study, it is aimed to determine some of the negativenesses incompatible with the independence and to mention the conditions for providing the independence

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