Monetary Policies and Inflation Targeting Strategy: Turkey and Morocco Comparision

This article comparatively discusses the monetary policies implemented in Türkiye and Morocco. In addition, the inflation targeting strategy implemented by the Central Banks after 1992 to ensure price stability and financial stability is examined in terms of the economies of Turkey and Morocco. Inflation targeting is a monetary policy strategy that aims to achieve price stability by setting a targeted inflation rate. In order for the inflation targeting strategy to be successful, GDP growth rates, GDP per capita and inflation rates are analyzed depending on the inflation rates of the two countries over the last twenty years. Türkiye switched to an inflation targeting strategy in 2002. In terms of implementation, it initially continued as implicit inflation and then as an explicit inflation strategy. While the inflation targeting strategy in the Turkish economy was successful until 2011, deviations from the inflation targeting strategy appeared after this year due to the increase in geopolitical risks and macroeconomic instabilities. In terms of the Moroccan economy, there is a relatively more stable inflation trend. The Moroccan economy, which has a hierarchical management system, narrows the authority of the Central Bank towards achieving a fixed inflation target and raises concerns about its reliability. Keywords: Inflation Targeting, Monetary Policies, Inflation Rate, Morocco, Turkey