The Role of Monetary Policy in Turkey During the Global Financial Crisis

The Role of Monetary Policy in Turkey During the Global Financial Crisis PDF

Author: Mr.Harun Alp

Publisher: International Monetary Fund

Published: 2011-06-01

Total Pages: 75

ISBN-13: 1455270482

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Turkey is an interesting case study because it was one of the hardest hit emerging economies by the global financial crisis, with a year-over-year contraction of 15 percent during the first quarter of 2009. At the same time, anticipating the fallout from the crisis, the Central Bank of the Republic of Turkey (CBRT) decreased policy rates by an astounding 1025 basis points over the November 2008 to November 2009 period. In this context, this paper addresses the following broad question: If an inflation targeting framework underpinned by a flexible exchange rate regime was not adopted, how much deeper would the recent recession have been? Counterfactual experiments based on an estimated structural model provide quantitative evidence which suggests that the recession would have been substantially more severe. In other words, the interest rate cuts implemented by the CBRT and exchange rate flexibility both helped substantially soften the impact of the global financial crisis.

Bank Lending in Turkey

Bank Lending in Turkey PDF

Author: Ms.Deniz Igan

Publisher: International Monetary Fund

Published: 2010-10-01

Total Pages: 34

ISBN-13: 1455209333

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The period following the 2000-01 crisis was marked by a successful disinflation program sustained through inflation targeting and fiscal discipline in Turkey. This paper studies the impact of monetary and fiscal policies on credit growth during this period. Using quarterly bank-level data covering 2002-08, we find evidence that liquidity-constrained banks have sharper decline in lending during contractionary monetary policies and that crowding-out effect disappears more for banks with a retail-banking focus when fiscal policies are prudent.The results are statistically weak, suggesting that bank lending channel is not strong in Turkey and government finances has limited direct impact on credit.

The Political Economy of Financial Transformation in Turkey

The Political Economy of Financial Transformation in Turkey PDF

Author: Galip Yalman

Publisher: Routledge

Published: 2018-10-03

Total Pages: 304

ISBN-13: 1317364694

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This volume provides a comprehensive study of Turkey’s financial transformation into one of the most dynamic, if not trouble-free, emerging capitalisms. While this financial evolution has underwritten Turkey’s dramatic economic growth, it has done so without ameliorating the persistently exploitative and unequal social structures that characterize neoliberalism today. This edited volume, written by an interdisciplinary range of political economists, critically examines Turkey’s financial transformation, contributing to debates on the nature of peripheral financialization. Eschewing economistic interpretations, The Political Economy of Financial Transformation in Turkey underscores both the quantitative significance of exponential growth in financial flows and investments, and the qualitative importance of the state’s institutional restructuring around financial imperatives. The book presents today’s reality as historically rooted. By understanding the choices made under the new Republic (from 1923 onwards), one can better locate the changes launched as a newly liberalizing society (since 1980). Likewise, the decisions made in response to Turkey’s 2001 financial crisis spurred a tectonic break in state–market–society financial relations. The waves of change have reached far and wide: from corporate strategies of accumulation and growth to small- and medium-sized enterprises’ strategies of financial survival; from how finance has penetrated the provisioning of housing to how households have become financialized. Put together, one grasps the complexity and historicity of the power of contemporary finance. One also sees that the changes made have not been class-neutral, but have entailed elevating the interests of major capital groups, particularly financial capital, above the interests of the poor and workers in Turkey. Nor are these changes constrained to its national borders, as what transpires domestically contributes to the making of a financialized world market. Through this ‘Made in Turkey’ approach the contributions in this volume thus challenge dominant understandings of financialization, which are derived from the advanced capitalisms, by sharing the specificity of emerging capitalisms such as Turkey.

Turkey and the Global Economy

Turkey and the Global Economy PDF

Author: Ziya Onis

Publisher: Routledge

Published: 2009-10

Total Pages: 337

ISBN-13: 1135268053

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Since the financial crisis of 2000 and 2001 the Turkish economy has undergone considerable change and some improvement. This book gives a detailed examination of the neo-liberal restructuring that has taken place and the challenges the economy still faces, providing a comparative perspective on recent reforms and the position of Turkey in the global economy. This book examines all major aspects of the post-crisis economic performance of the Turkish economy. Major sectors of the economy such as agriculture and manufacturing along with key issues such as privatization, export growth, developments in the labour market, poverty and social exclusion are analysed in detail. The authors consider Turkish performance from a comparative perspective, drawing attention to its similarities with the experience of other emerging markets. Providing an insight into the major difficulties of post-crisis adjustment, sustainability of the gains achieved so far and the challenges that lie ahead, this book will be of interest to academics and scholars in the fields of International Political Economy and Globalization Studies, Middle East Studies and Development Studies, as well as having significance for practitioners in emerging markets.

Financial Programming and Policy

Financial Programming and Policy PDF

Author: Richard Carl Barth

Publisher: International Monetary Fund

Published: 2000

Total Pages: 482

ISBN-13:

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Contains a series of workshops that present the macroeconomic concepts and accounting and behavioral relationships needed to develop, step-by-step, a reference scenario for the Turkish economy for a selected program based on the assumption that macroeconomic from the preceding year will remain unchanged.

Turkey

Turkey PDF

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 1995-06-08

Total Pages: 137

ISBN-13: 1451837976

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This paper reviews economic developments in Turkey during 1992–95. Economic activity expanded sharply in 1993, sustained by buoyant domestic demand that was underpinned by expansionary fiscal and monetary policies, but accompanied by a large deterioration in the current account position. The unsustainability of this policy stance resulted in an exchange and financial market crisis in the first months of 1994. In April 1994, the authorities announced a comprehensive stabilization program that included substantial fiscal retrenchment, monetary tightening, and a structural reform agenda intended to strengthen the adjustment effort over the medium term.

Monetary Policy in Turkey After Central Bank Independence

Monetary Policy in Turkey After Central Bank Independence PDF

Author: Refet S. Gürkaynak

Publisher:

Published: 2015

Total Pages: 29

ISBN-13:

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We present an accessible narrative of the Turkish economy since its great 2001 crisis. We broadly survey economic developments and pay particular attention to monetary policy. The data suggests that the Central Bank of Turkey was a strong inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal anchor is visible in the break we estimate in Taylor-type rules as well as in asset prices. We also argue that recent discrete jumps in Turkish asset prices, especially the exchange value of the lira, are due more to domestic factors. In the post-2009 period the Central Bank was able to stabilize expectations and asset prices when it chose to do so, but this was the exception rather than the rule.

Sustaining Growth in Emerging Markets

Sustaining Growth in Emerging Markets PDF

Author: Ahmet Aysan

Publisher:

Published: 2016

Total Pages: 28

ISBN-13:

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The last decade witnessed an unprecedented economic growth in Emerging Market Economies (EMEs). EMEs have also been the main drivers of growth in the recovery following the global financial crisis. Nevertheless, EMEs continue to face a number of institutional and structural challenges that may pose risks to the sustainability of their recent growth performance, with potentially significant repercussions for the world economy. In this paper, we present a detailed account of Turkey's experience in dealing with various institutional and structural challenges during the last decade and provide evidence that taking the right steps can enable EMEs materialize their full growth potential going forward. Successful institutional and structural reforms can also provide room for monetary policymakers to effectively navigate their economies through turbulent times such as the recent global financial crisis.

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