New Monetary Policy Concept and Financial Stability

The Monetary Policy that was designed with only one objective and one tool has been replaced with extraordinary implementation after 2008 financial crisis. In this period, as Central Banks set financial stability in their goals, this new target requires a new tool named macro prudential policy. Passing away effects of crisis, countries began to work some practise about monetary policy that is in extraordinary conditions for normalizing. This study aimed to inform processing with normalizing monetary policy and refers to the current debate. For this purpose, it has tried to explain the concept of financial stability. And then it has given information about changing role of monetary policy and macro prudential policy. Last, the study has ended with debates regarding the final version monetary policy.