Effect of central bank independence to output gap: Case of Turkey

This paper tries to figure out whether legal and actual independence of Central Bank of Republic of Turkey (CBRT) affect the output gap statistically significant with quarterly macroeconomic variables between 1997 and 2010 time period. Direction and intensity of the relationship, if any, is examined by econometric model established with the help of control variables. According to estimated model outputs, central bank independence in Turkey has a positively important impact on output gap; namely, as legal independence has risen, real growth in Turkey has also risen during period analyzed.