Uncertainty has eased owing to reduced volatility in inflation and economic units have been able to foresee longer maturities, thus that the risk premium has declined. Graph 4: Volatility in Inflation* 2,5 1,99 2  1,89  1,5  1,08 0,71  1 0,5 0 2001  2002  2003  2004  * Volatility is calculated as the 12-month moving averages of the standard deviations of monthly inflation rates. Source. CBRT. Another significant point I will mention in relation to the changing dynamics of inflation is the apparent change observed in the pricing behavior of producers and consumers. Hand-in-hand with the start of the disinflation process and the acknowledgement to a large extent in economic units that this is a permanent state, producers and consumers have adopted a different approach. Producers have started to pay more attention to cost control and the increase in productivity, while setting their profit margins in pricing policy and consumers have begun to be more actively involved in the pricing process by conducting price and quality controls, using the advantage of a more competitive market.
Also, in the case of Turkey, monetary reform was launched, not as part of the stability program, but after having monitored the results of the program and achieved macroeconomic stability to a large extent. At this point, I would like to point out that the realization of monetary reform up to now has been mainly in tune with our forecasts and has followed a favorable course. As of 8 April 2005, the amount of YTL banknotes in the total amount of banknotes made up 73.5 percent. Within this framework, it has come to our attention that some foreign financial enterprises have recently begun to issue bonds denominated in the New Turkish Lira. Another positive impact of monetary reform which also strengthens the macroeconomic stability process is that the securities issued in international markets in New Turkish Lira can now be cleared. Due to the inability of the technical facilities of foreign financial enterprises to keep records of a currency unit with all those zeros, issues denominated in Turkish lira could not be cleared in the international systems of safe custody such as Euroclear or Clearstream before the transition to the New Turkish Lira. This obstacle has been removed with the dropping of six zeros from the Turkish lira and the introduction of the New Turkish Lira. After all, monetary reform is one of the most prominent indicators of the permanence of macroeconomic stability and of the fact that price stability will be attained within this context.