Eurasian Economic Review

, Volume 4, Issue 1, pp 71–79 | Cite as

Effects of additional monetary tightening on exchange rates

  • Ergun Ermisoglu
  • Yasin Akcelik
  • Arif OduncuEmail author
  • Temel Taskin
Original Paper


Since the global financial crisis, central banks have used various policy tools to sustain financial stability in addition to price stability. Additional Monetary Tightening (AMT) is one of these tools that the Central Bank of the Republic of Turkey used in 2011–2012. The effects of this tool on the exchange rate are the main theme of this paper. Our analysis indicates that AMT has a significant role in reducing volatility in the exchange rate. We also show that during the days of additional tightening Turkish Lira appreciated against the other emerging market currencies.


Additional monetary tightening Central Bank of the Republic of Turkey’s New Policy Mix Turkish Lira Emerging markets 

JEL Classification

C22 E58 



The authors would like to thank Erdem Basci and Mehmet Yorukoglu for their helpful comments. The views expressed herein are solely of the authors and do not represent those of the Central Bank of the Republic of Turkey or its staff.


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Copyright information

© Eurasia Business and Economics Society 2014

Authors and Affiliations

  • Ergun Ermisoglu
    • 1
  • Yasin Akcelik
    • 1
  • Arif Oduncu
    • 1
    Email author
  • Temel Taskin
    • 1
  1. 1.The Central Bank of the Republic of TurkeyAnkaraTurkey

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