Berument, HakanTaşçı, H.2016-02-082016-02-0820041076-9307http://hdl.handle.net/11693/24346This paper estimates a forward-looking monetary policy reaction function of the Central Bank of the Republic of Turkey by considering the period from 1990:01 to 2000:10. When the spread between the interbank rate and depreciation rate of the local currency is taken as a policy tool, the empirical evidence suggests that the Turkish Central Bank responds to its foreign exchange reserves, output and M2 growth not the forward, current or lagged inflation. © 2003 John Wiley and Sons, Ltd.EnglishInflation targetingReaction functionSpreadCentral bankCurrency devaluationCurrency marketMonetary policyEurasiaTurkeyArticle10.1002/ijfe.2191099-1158