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    Have you ever visited the Prime Ministry web site?
    Güven Sak, PhD 17 January 2009
    United States of America is getting ready for the Obama era. Inauguration is to be held next week. Bush period of "So many leadership with no followers", as Harvard professor Joseph Nye puts it, is coming to an end. Just a while before, we were saying that "President Obama will be the first president of the Star Trek generation" - in the article talking about "going to places where no one has dared to go before".  Presidency of Obama highlights that some things are not going to be the same for the United States of America. Please, do not show displeasure and say "nothing ever changes there".  You shall give America its due. But, do not worry, today, I do not have any intention to comment on America. I am just seeking to make an extended introduction on the subject of internet and communica [More]
    Prerequisite for changing the reality is accepting it
    Güven Sak, PhD 15 January 2009
    You might be discontent with the reality you face. Changing that reality might be the main purpose of your life. However, you cannot fulfill that purpose by pretending as if that reality does not exist. Recently, in Turkey, we observe "a tendency towards flight from reality" with respect to both economic policy and foreign policy. Since leadership means accepting and trying to change the reality, this tendency is certainly bad. And in fact, it is extremely dangerous. Let's see why. [More]
    Are we the control group of an experiment?
    Güven Sak, PhD 10 January 2009
    Turkish government has been monitoring the financial crisis that has been blatantly arriving here in Turkey as long for almost one and a half years without taking any precautionary measures. Observing such contentment, one cannot stop thinking that the government has an intention. Recently, a friend of mine said "I am afraid that Turkey might be the control group." Why not? Maybe, Turkey is the control group of the experiment conducted to understand the measures required to tackle the crisis. Can this be possible?  Let us see. [More]
    Central Bank shall reconnect with the reality as soon as possible
    Güven Sak, PhD 08 January 2009
    The world has changed. This was what the International Monetary Fund (IMF) chief economist Olivier Blanchard and Director of Fiscal Affairs Department Carlo Cottarelli were mentioning in the joint statement they delivered recently, "What kind of an expansionary fiscal policy do we need?" If you wish, you can find the transcript of the statement in English in the IMF web site or in Turkish in the TEPAV web site. As the world is changing, everyone is trying to adjust, including the IMF. Only the Central Bank of the Republic of Turkey is still living in yesterday's world. However, it is crucial for the Central Bank to reconnect with the reality. If you are wondering why, please go on reading. [More]
    Favorable indicators of yesterday do not give good news anymore
    Güven Sak, PhD 06 January 2009
    2009 will be year different from those we are used to. Before 2009, it was easier to understand which was a right step and which was a wrong step. The economy was operating within the framework we are familiar with. This year, however, things are different. The changes in indicators, which we would deem as favorable in the past, do not point a favorable state of affairs now. Therefore, confusion is inevitable. We are in a period where we have to look back on the things we know. The economy is shifting from one phase to another and in the meanwhile, main problem of the economy is changing. Set of concepts and indicators valid back then do not mean anything today.  Let us see towards what direction the binding constraints of yesterday move and what does this mean for the economy. [More]
    2009 will be the year of easy decisions for the economy
    Güven Sak, PhD 01 January 2009
    Happy New Year! I wish that 2009 brings richness and happiness for everyone living on this beautiful blue planet. In fact, a year in which we will need patience the most has come; not only for the residents of this country, but for everyone living on this planet. Our destinies have never been this interlocked before. We have never encountered such synchronized disasters. For the first time, the world is starting a year with common grieves and concerns. This is as well valid for Turkey. Then, what shall we expect from the year 2009? 2009 will be the year of easy decisions for the economy. Do not get me wrong, naturally hard decisions will also be made. This year will be a hard one for the Turkish economy. However, those hard decisions will be made easily without constantly postponing the is [More]
    ‘If you are in debt, you are in trouble’ period begins for the corporate sector
    Güven Sak, PhD 30 December 2008
    Honorable businessman Mr. Tuncay Özilhan said "Ankara residents do not feel what goes on in Anatolia". He was right. The subject was on the headlines of this daily yesterday. Today let me examine the problems the corporate sector encounters in daily life. The topic is 'if you are in debt, you are in trouble'. [More]
    Who helped Bernard Madoff?
    Güven Sak, PhD 27 December 2008
    Bernard Madoff shock in the capital markets take place on December 11, 2008. According to the statement of the website of Securities and Exchanges Commission (SEC), Mr. Madoff, founder of Bernard L. Madoff Securities Investment and board of executors of the company for 48 years, was arrested. The cause of investigation was the statements Madoff made to his sons, who are senior executives in the company. Our successful businessman said his fellow colleagues: "What we are doing is nothing but fraud; you can only call this Ponzi financing". And the fellow colleagues, without wasting time, reported their father/boss to the SEC. [More]
    What does ‘no money circulation in the market’ mean?
    Güven Sak, PhD 25 December 2008
    Last Tuesday we said "Let go the empty talks and see what we should do." In this context, we first focused on the corporate sector. It seems that the current conditions will first affect the corporate sector regardless of what we want. Until today, we in a polite and technical manner said "It is critical to prevent any obstruction in the credit channel"; but no one understood anything. Therefore, today it is time to explain what is going to happen concretely. Do you remember the first example? The question we asked was quite simple: What happens if banks tell companies 'The collateral you supplied for the credit you received is not sufficient anymore. Either supply additional collateral or return the part of the credit not covered by the collateral'? The answer was that bad things happened [More]
    How can resources be transferred to the corporate sector?
    Güven Sak, PhD 23 December 2008
    IMF Managing Director Dominique Strauss Kahn underlined three points in his speech in Spain: first is the banks shall be recapitalized in a coordinated way to re-ensure the operation of the banking system. Second is that it was time for expansionary fiscal policy to tackle the approaching depression. Any country that has the capacity should expand public expenditures. Third, emerging market economies should be provided with liquidity support without questioning. The aforesaid statement of the IMF Managing Director in fact shall make us sweat suddenly and profusely. We are not used to hear this kind of statements from the IMF. However, this makes sense as we are faced with unusual conditions. In such a period where no one has time to think for any other, everyone shall start evaluating his [More]