The Centre organised a training course on “Inflation Targeting” at the National Bank of Tajikistan on 29 November – 1 December 2010. The course was provided by Ms. Neslihan Kaya, expert from the Central Bank of the Republic of Turkey and was attended by 8 staff members of the National Bank of Tajikistan.

The training course on “Inflation Targeting” mainly covered the following subjects:

Turkish Monetary Policy Experience Prior to Inflation Targeting

• Monetary policy implementations of the CBT before 2001-2001 crisis
• Implicit inflation targeting period (2002-2005), fulfilling the necessary prerequisites for inflation targeting

Operational Framework for Inflation Targeting: The Case of Turkey

• The current framework of full-fledged inflation targeting period: 2006-onwards
• Independence, transparency and accountability issues
• Altering the target, target range, policy tool, etc. and its implications

Forecasting and Policy Analysis System (FPAS) at the CBT

• What is FPAS?
• How does the CBT exercise the FPAS process?
• The underlying model and its role during the process
• Underlying monetary transmission mechanism
• Main blocks of the core model

Monetary Transmission Mechanism in Emerging Market Economies: Case of Turkey

• Common characteristics of an emerging economy
• Conventional channels in the MTM
  • Aggregate demand channel
  • Expectations channel
• Possible breakdowns in conventional channels: Empirical evidence from Turkish economy

Turkish Monetary Policy Experience with the Recent Global Crisis

• Policy measures taken during the crisis
  • Conventional measures
    • Policy rate cuts
  • Unconventional measures
    • Measures to prevent volatility in money markets
    • Measures to ensure the smooth functioning of credit markets
    • Measures to directly support the real sector

The aim of this training course was to improve the capacity building and performance of the National Bank of Tajikistan on “Inflation Targeting”.