Many emerging markets have adopted floating exchange rate regimes after currency crises. Turkey has experienced floating regime since 2002 combined with inflation targeting. This paper examines the exchange rate pass–through in the transition to low and stable inflation environment in Turkey before and after inflation targeting. Obtained results show that low and stable inflation in Turkey leads to low levels of exchange rate pass–through and thus contribute to weakening the “fear of floating” phenomenon experienced by some small open economies. Therefore, it is argued that once nominal variables are stable, the “fear of inflation”, which any central bank should have, no longer implies a “fear of floating”.