Dr. Özatay is a professor at TOBB University of Economics and Technology
Consumer inflation in March was announced as 61.1 percent. Thus, we went back twenty years. The last time inflation was above this level was in March 2002: 65.1 percent. Nonetheless, there was a significant dissimilarity. At that time, the “Transition to a Strong Economy Program” was being implemented. The inflation, which had peaked at 73.2
As the cost of living increases, Turkey’s government took measures such as VAT reductions. Nonetheless, inflation cannot be reduced with tax cuts unless the reasons that escalate it are eliminated. Early this week, the VAT rates on some basic goods were reduced from 18 percent to 8 percent. A similar practice was applied for some
The Monetary Policy Committee will convene on March 17 and announce its decision. You might smirk when you read the word “decision.” As a former Central Banker, I cannot stand to write otherwise. In fact, I had had no intention to write an article for today. This morning, I sat in front of my computer
As announced last week, the growth rate of Turkey was 11 percent in 2021. It is too high. So, is it sustainable? At which level could 2022 growth be? What are the risks that can create headwinds? Potential growth It is critical to pay attention to two different concepts related to growth. The first is
It is routine to write the highest/lowest such and such indicator of such and such year. No surprise and I will start by explaining the inflation rates announced on January 3 with a few boring figures. The currently used consumer price index has been published since 2003. The highest monthly inflation in this entire period
Turkish Ministry of Treasury and Finance Minister Nureddin Nebati detailed the fiscal moves announced by President Tayyip Erdoğan on December 20, which aimed to take recent fluctuations of the Turkish Lira under control with a new system. The positive side of the new system is as follows: The announced decisions have prevented the out-of-control increases
The Minimum Wage Determination Commission has been working to determine the minimum wage effective in 2022. The current gross and net minimum wages for those over sixteen are 3,577.5 and 2825.9 liras, respectively. [The net amount mounted $383 in January 2021 and is $218 in December 2021 due to the depreciation of the Turkish lira.]
The proposal that “if interest rates fall, inflation will decrease” is not misleading; however, it depends on some conditions and the kind of ‘interest rate.’ An economy providing necessary conditions implies that it moves on a healthy path. What are these conditions? And which interest rate, as well as whose interest rate are we talking
The other day I visited my old father, who had had a surgical operation on a bone fracture a while ago and stopped listening to the news bulletins since then. He says his indifference towards the news reports is temporary when asked. Out of the blue, “What is the value of the dollar recently?” asked.
Is it possible that a central bank of a country with a current account deficit for years could make its country with a permanent current account surplus with any policies it would implement?The importance of this question is crystal clear since Şahap Kavcıoğlu, the Governor of the Central Bank (CBRT) claimed precisely the abovementioned issue