Turkey's Experience with Macroprudential Policy

Abstract

The global financial crisis have led to a reassessment of macroeconomic policy formulation across the globe. As a consequence, countries have expanded their policy toolkits with macroprudential policies in recent years to deal with macro financial risks. The heightened volatility in capital flows during the post-crisis period has led to significant challenges especially for emerging economies by worsening policy trade-offs. Such an environment made additional tools of macroeconomic and financial policy more valuable.

Full publication: Macroprudential Policy