The aim of this lesson is to make students get the theoretical parts of monetary policy. In that sense, presenting the purpose of central banks and how to use the means and the results of them in the frame of transfer mechanism is aimed. Also, the monetary policy of TCMB from past to present is tried to be explained.

Tools of Monetary Policy, Cost of Inflation and Inflation Theory, Price Stability and Importance, Time Inconsistency and Credibility Problem, Central Bank Independence, Investigation of the Central Bank Monetary Policy.