Abstract:

Our study will examine the macro-financial instability and the flexible inflation targeting regime followed after the global financial crisis and the global liquidity resulting from the excessive loose monetary policy followed by the central banks of the industrialized countries as a result of the entry into the developing market economies in the form of short-term portfolio investments. Then, especially in the fight against negative supply shocks, the flexible inflation targeting regime and the characteristics of this regime will be focused on an alternative to the inflation targeting regime, especially in the recent period.