Fatih Özatay, PhD
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Story of the interest on required reserves
The most striking one of the decisions the CBRT (Central Bank of the Republic of Turkey) announced the last Thursday was the abolition of the interest on required…
Why should intervening in foreign exchange be the responsibility of the Central Bank alone?
I have postponed and avoided writing about this issue for long. But since I have been talking about exchange rate issue and as the issue was featured on the morning news…
How much the interest rate must be cut to increase the exchange rate?
My last commentary ended with the following sentence: What is behind this 'terrifying' purchase-sale traffic in the exchange rate market if it is not the need of foreign…
What is behind the FX trade?
I started to a series on exchange rate; but it was interrupted by growth figures and the recent decision on interest rate. A meeting by exporters and the CBRT (Central…
Should not we first read what we tend to interpret?
The recent interest rate decision was generally misinterpreted. It was said that the CBRT (Central Bank of Republic of Turkey) cut interest rates and comments that might…
First half of the year is OK; what about the second half?
Two important figures were recently announced: GDP in the second quarter of the year and unemployment rate for June. Let me start with emphasizing two favorable…
Meaningless fuss
It is exporters in general who mention a certain level for exchange rate. This is 'understandable' considering only the exports. After all, exchange rate affects the…
Do those who talk through their hat know?
Let me begin with a quotation from an academic research published in 1995: "There is remarkably little evidence that macroeconomic variables have consistent strong…
Inertia of economic policy
If you are of belief that the market mechanism should not be intervened in and that the economy will reach the equilibrium in its own dynamics, you do not have to worry…
Another duty loss?
I would like to start with the commentary of Hasan Ersel published in Referans daily on September 1 st . He examines by various angles the decision that cuts the…
CBRT needs a new implementation framework
The following sentences are retrieved from the second page of the first inflation report published by the Central Bank of the Republic of Turkey (CBRT) in 2010: "The…
Ensuring shift of axis
In politics we frequently hear the argument 'We follow from so-and-so.' They put this argument to pride on. But were those who are followed really successful? On which…