EVOLUTION OF THE STATUS OF THE CENTRAL BANK OF THE REPUBLIC OF TURKEY: ON THE INSTITUTIONAL MATURITY OF GROWING MARKETS
The article analyzes the evolution of the status of the Central Bank of the Republic of Turkey (CBTR). At the same time, the nature of the relationship between the Central Bank and the executive branch, the level of independence from it, and therefore the possibility of conducting an independent monetary policy and establishing control over inflation are considered to be the main ones in the concept of status. On the one hand, the evolution of the CBTR's status in the direction of increasing this kind of independence was the result of the weakening of state intervention in the development of the national economy, i.e., it accompanied its market transformation. On the other hand, in the course of economic liberalization in Turkey, as in other countries with growing markets, the degree of consistency in changing the status of national central banks is one of the indicators of maturity and sustainability of new market-type institutions. Keywords: Turkey, state regulation of the economy, Central Bank of the Republic of Turkey (CBTR), independence of the CBTR, key rate, inflation, economic growth. The Central Bank of the Republic of Turkey (CBTR) was established in June 1930 on the basis of Law No. 1715. From the second half of the 19th century, the Anglo-French Ottoman Bank had the right to issue the national currency. The decision to create a national central bank was intended to protect Turkey from the adverse effects of the global economic crisis of the late 1920s and early 1930s and to ensure the stability of the national currency. CBTR received the status of a joint-stock company. The distribution of its capital among several shareholders should have been a guarantee against attempts to exert political pressure on the bank in the implementation of monetary policy: the share of the treasury (state) It could not exceed 15% [Akgüç, 1992, p. 136]. Thus, when creating the CBTR, the concept of its functioning was based on the idea of independence from the state, which wa ... Read more
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Full version: https://library.se/m/articles/view/EVOLUTION-OF-THE-STATUS-OF-THE-CENTRAL-BANK-OF-THE-REPUBLIC-OF-TURKEY-ON-THE-INSTITUTIONAL-MATURITY-OF-GROWING-MARKETS
Eesti Online · 12 days ago 0 20
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Eesti Online
Tallinn, Estonia
29.11.2024 (12 days ago)
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EVOLUTION OF THE STATUS OF THE CENTRAL BANK OF THE REPUBLIC OF TURKEY: ON THE INSTITUTIONAL MATURITY OF GROWING MARKETS
 

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