An Assessment of the Inflation Targeting Policy in Turkey and Evaluation of the GDP Targeting Policy as an Alternative

The inflation targeting policy is a monetary policy that was first implemented in New Zealand in the 1990s and then implemented in developed and developing countries worldwide. Inflation targeting policy, which had found wide application until the 2008 global financial crisis, caused the emergence of specific problems, especially in developing countries. As the inflation targeting policy was ineffective in solving these problems, the applicability of the GDP (Gross Domestic Product) targeting policy, which was previously argued for in the literature, has started to be discussed again. This study assesses the success of the inflation targeting policy in Turkey and provides a general understanding of the GDP targeting policy as an alternative.