Fatih Özatay, PhD
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The cost of the Central Bank’s new policy (2)
The share of FX liabilities in the Central Bank’s total debt rose from 44 to 67 percent. On Tuesday, I addressed the positive aspects of the Central Bank’s (CB) new…
The cost of the Central Bank’s new policy (1)
Banks are now allowed to keep a certain proportion of required reserves for lira deposits in FX. Quite a while ago the Central Bank (CB) introduced a new monetary policy…
Has the income gap narrowed down?
Since 1960, GDP per capita gap between G7 countries and Turkey has not changed much. As you might remember, in one of last week’s commentaries, I criticized a figure…
There still is a positive development despite all the negative ones
So, now it is a greater probability that in the third quarter, growth rate might be weaker than the 2.9 percent in the second quarter. Last week I promised to write on…
Forced steps at the wrong time
The combination of the first three in particular is a new phenomenon for Turkey. New and critical… Over the past two years, Turkey made economic policy mistakes. First…
Medium-term or infinite-term?
The core problem is that, that “medium-term” somehow turns into “infinite-term.” There is no need to put yourself in the line of fire. God forbid all my beloved ones and…
Is this a game?
Is it possible that bureaucrats from the Ministry of Finance and the Treasury did not inform the CB of the plans? Yesterday, inflation figures were announced. In short,…
Price raises and the Central Bank
I think, the CB will keep the average funding cost close to the policy interest rate unless exchange rate changes unfavorably. First, tax on selected goods and services…
Why the fall in exports calls up the fiscal rule?
With a focus on the “moment” these all are right steps towards stability. From a dynamic perspective, however, these are proved wrong. There were two factors that…
The CB’s hands are clean
It seems we will be searching who did wrong as we are keenly interested in identifying wrongdoings and wrongdoers. With the economic growth in the first quarter slipping…
What are the odds that the CB didn’t know about tax measures?
The probability that the CB took its latest decisions having no knowledge of the tax revenue raising measures to come is one in thousand, if not zero. The latest tax…
Risks everywhere!
European stability funds will impose certain terms for applicant countries and will closely monitor if these terms are met or not. The other day, I stressed three risk…