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    On tax revenues
    Fatih Özatay, PhD 22 February 2011
    We can achieve Ireland's tax revenue/GDP ratio for 2008, for instance. This corresponds to a 4.6 points of improvement in the ratio relative to the GDP. Having examined the per capita income levels, now it is time to compare the tax revenues. I have carried out a similar evaluation on the basis of Organization for Economic Cooperation and Development (OECD) data. The newest data in that evaluation was on the year 2007. How data for 2008 and partially for 2009 are available. Therefore it will be wise to revisit this highly important issue. [More]
    Per capita incomes revisited
    Fatih Özatay, PhD 19 February 2011
    Over the last three decades Turkey did not make as much progress as Korea and Ireland in terms of per capita income by purchasing power parity. I am keeping the promise I gave in my previous commentary. First a small reminder for those who are not familiar with the subject: It is needed to make some arrangements to compare the level of income in different countries. The aim is to calculate the income of countries in a way to reveal the 'purchasing' power implied by a certain level of income. The income derived as a result of this calculation is called 'income at purchasing power parity'. I will call this the 'corrected income'. [More]
    Different income comparisons
    Fatih Özatay, PhD 17 February 2011
    'Corrected' income figures calculated on the basis of the prices of goods and services and of the methods also differentiate. Comparison of per capita income across countries is a tricky business. Income of a particular country is calculated in terms of that country's domestic currency. Calculated incomes can be stated in terms of a single currency by using the valid exchange rates. However, this does not solve the problem completely for two reasons. [More]
    Egypt and Tunisia: Some other indicators
    Fatih Özatay, PhD 15 February 2011
    It is not possible to explain the recent movements in Tunisia and Egypt referring only to economic indicators. I want to address some other indicators on Egypt and Tunisia. The key question is: Is it possible to explain the recent movements in Tunisia and Egypt referring only economic indicators? [More]
    Were interest rate decisions made by a single official?
    Fatih Özatay, PhD 12 February 2011
    The claim that the interest rate decisions are made by a single official probably stems from the fact that in the implicit inflation targeting period the decision was not made by the MPC. You probably have seen in press. It is argued that 'until recently' the interest rate decisions of the CBT (Central Bank of Turkey) were made by a single official (clearly referring to the Governor of the CBT). Is this true? You might as where on earth did this question come from now. I have a personal motivation. I also worked at the CBT in the referred period and I was of belief that I had an important role in the interest rate decisions. If the mentioned decisions were made by a single official this implies that I worked at the Bank for five years with no use to anyone. This would not be nice. Did I do [More]
    For the CBT not to be questioned
    Fatih Özatay, PhD 10 February 2011
    The CBRT needs support in ensuring quantitative tightening. Otherwise the new policy framework will further be questioned. Last week two important indicators were announced. The data was quite favorable: a marked decrease in inflation and a striking increase in production. I will try to evaluate these developments in the context of the Central Bank's (CBT) new policy framework. [More]
    Egypt and Tunisia: Two indicators
    Fatih Özatay, PhD 08 February 2011
    Based on my observations on the streets, Egypt and Tunisia appear as poor countries. I have no data on income distribution. Today I want to examine two macroeconomic indicators for Tunisia and Egypt. I do not have the knowledge to make an economic assessment for these countries. Therefore, I will settle with comparing the selected macroeconomic data with that for other countries. [More]
    The Central Bank’s dilemma with a different perspective
    Fatih Özatay, PhD 05 February 2011
    After the latest decisions of the Central Bank of Turkey (CBT) mixed fund costs were calculated several times. These are not meaningful in regular countries.' Imagine a bank that has a total 100 TL of funds (liabilities) all of which is in form of deposits and has one year maturity. If required reserve ratio of 5 percent and the bank uses the deposits only in form of extending credits, it has to deposit 5 percent to the CBT an extend credits with the remaining 95 TL. [More]
    How to make a pass?
    Fatih Özatay, PhD 03 February 2011
    The political authority must introduce measures discouraging short term capital inflows. What was the main problem of the currently implemented monetary policy? The problem was that it aimed to reduce the volume of funds that banks can extend as credits in order to limit the rapid credit expansion on the one hand, and transferred funds with weekly maturity to banks in order to keep the policy rate around the targeted level. [More]
    Since there is no one to pass the ball at...
    Fatih Özatay, PhD 01 February 2011
    'Should the BRSA step in, the contradiction would be eased. To completely eradicate the contradiction, political authority must also get involved.' 'The routine-breaking' monetary policy have brought about many article topics. In my last year in the Central Bank of Turkey (CBT) I started to become quite bored. There was no motion. Inflation was no more a problem, targets were being met. Moreover, Turkey grew at a rate above the long-term average. The only potential source of motion was the potential steps to be taken to reduce current account deficit. [More]