Turkish economy: Timely reporting and analysis of economic developments in Turkey with all its structural problems, as one of world’s 20 biggest economies
From the perspective of a monetary economist, inflation is always the first item that should be addressed on the way to sustainable growth. Hence my unduly emphasis on price stability. Despite all the tragedy and loss, perhaps one of the few gains in 2020 was to bring the abstract notion of price stability down to
The government has increased the minimum wage to 2825 Turkish Liras (roughly $379) for 2021. “We kept our promise that we will not let our workers bow to inflation,” said Family, Labor and Social Policies Zehra Zümrüt Selçuk, while announcing the increase on Dec. 28. The trade unions criticized the minister for “condemning workers to
It is difficult to make a meaningful assumption as to when foreign investors will again start to make strategic investments in Turkey. It is, however, less difficult to predict that foreign investors will not start investing in Turkey in levels close to those between 2005-2015 in the near future. Is there something to be done
In a letter to U.S. President-elect Joe Biden, Turkey-US Business Council (TAIK) Chairman Mehmet Ali Yalçındağ said that sanctioning Turkey could harm economic relations between the two countries and more trade could help to ease the political tension. Yalçındağ, who is also known for his friendship with former U.S. President Donald Trump, congratulated Biden in
Journalist Bahadır Özgür discusses why Tümosan AŞ, the designated engine producer of Turkish tank project Altay, has been split into two companies, even extending the saga of the ongoing domestic defense bid. Albayrak Group, a Turkish holding company not to be confused with the businesses of the family of former minister and President Erdoğan’s son-in-law,
President Tayyip Erdoğan has announced that he will start a new wave of reforms in “law, economy and democracy.” There was no election, the administration did not change, but why is it necessary for a “new reform wave”? The answer lies heavily in the course of the economy. Opposition leaders claim it is a maneuver.
There was one thing that President Tayyip Erdoğan had never done during his rule since 2002: He had never sacrificed a minister targeted by the opposition during the peak of the debate. The first example of this was Treasury and Finance Minister Berat Albayrak, his son-in-law. More interestingly, only a few months ago, when Interior
Erdoğan spoke and the markets were thrilled, according to the mainstream Turkish media. The reason is that the value of the Turkish Lira rose to 7.8 per dollar from 8.5 following a year that the government spent $100 billion to keep it initially below initially 6 liras and then 7.And the media does not care
Central Bank Gov. Uysal’s replacement combined with Finance Minister Albayrak’s resignation might signal the end of an era in monetary policy that relied on an unorthodox policy mix with low interest rates and foreign exchange reserve sales. We are still trying to sort out what to expect from the second week of November after a
The government revealed its new economic program for 2021-2023 on Sept. 29. The long-term goals of such programs hardly go beyond being a wish list worldwide. This is because the economy is an equation with so many unknowns. Hence, it can even be difficult to predict the following month not to mention the following year.But