Research Information System
International Conference on Eurasian Economics 2016, Kaposvár, Hungary, 29 - 31 August 2016, pp.658-666
Central banks fulfill missions like financing governments, contributing the improvement of the financial market
and implement monetary policy. Because of these important functions, instruments of the central bank has become
a subject of ongoing debate over the years. The Central Bank's monetary policies instruments are important in
terms of achieving the set macroeconomics targets. In recent years to become a major focus of attention of the
interest rate corridor instrument has led to examine the structure of the central banks. The interest rate corridor
primarily, provides flexibility advantages through interest rate to the central banks. The opinion that the central
banks which have a flexible structure are more successful on ensuring the price stability and implementing macro
policies with evading the political effects became stronger. In this context, in this study to examine the
contributions of a flexible central bank to price stability and financial stability. In this bulletin different policy
instruments of central banks are compared and critically assessed various determinants of central bank
flexibility. In addition, comparing of the legislation of major central banks and various interest rate corridor
implementations are examined.