EFFECTS OF SHORT-TERM CAPITAL MOVEMENTS OF MONETARY POLICY PERIOD AFTER 2000: THE CASE OF TURKEY

Abstract

Short- term capital flows are capital which is usually less than one year. Short- term
capital movements lead to economic fluctuations as a result of sudden entry and exit from the
country. The financial stability did not provide of the price stability after global crisis.
Nevertheless, the effect of short-term capital flows on monetary policy has been as follows.
First, price stability and financial stability together have to be taken into account. In consequen
of this CBRT has started use new monetary policy instruments and to go into a variety of
instruments. This led to the adoption of measures to direct short-term speculative capital flows
into direct capital flows with new money applications