Abstract:
Central banks aim to contribute to the increase in welfare at the desired level by feeding macroeconomic variables through the transmission mechanism. They try to reach this goal through price stability which is the ultimate target variable. In this context "intervening target variables" are used as a mediator goal to be able to control the “relevant target variable” through "operational target variable".Crisis periods in which economic elements and applied policies are more visible are an opportunity to observe these practices. Central Bank of the Republic of Turkey (CBRT) had an effort to counter the negative macroeconomic situation which was the turmoil of 2008 The Global Financial Crisis's domino effect by using operational target variables. This effect was positive, but it was not permanent.

Keywords: Monetary Policy, Central Bank, CBRT, Target Variables, Operational Goal, Inflation, Unemployment

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