Turkey's monetary policy rules impact economy differently in times of crisis
The article compares different ways Turkey can manage its money to keep the economy stable. They looked at four options: focusing on keeping prices stable, tying the value of money to another currency, following a set rule for adjusting interest rates, or fixing the exchange rate. They used a model to see how each option would affect the economy when things like productivity or government spending change. They found that when the economy faces outside changes, focusing on stable prices has the smallest impact. But when changes happen within Turkey, the best options are following a set rule or tying money to another currency.