A page in history
Fatih Özatay, PhD
02 December 2010
It is stated that one of the major factors that triggered the crisis was high interest rates in Germany. We should not be surprised of the developments in the European Union anymore. Today's commentary is on a page in history.
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Nihat Ergün is right, Taner Yıldız is not.
Güven Sak, PhD
30 November 2010
Turkey does not have the chance to assume a 'wait-and-see' policy with respect to electic automobile technology. Do you follow the debates on renewable energy and electric automobiles? I personally find the arguments following one another quite interesting. Focusing on the debate of the last week, I think Nihat Ergün, Minister of Industry and Trade, rather than Taner Yıldız, Minister of Energy and Natural Resources, is right. Turkey does not have the chance to assume a 'wait-and-see' policy with respect to new technologies. This 'wait, we will see what to do when the technology is sufficiently developed first' attitude reminds me how Turkey lost pace over the last decade.
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Merkel and Sarkozy's actions
Fatih Özatay, PhD
29 November 2010
'Academic research reveals that market attacks take place also without a valid cause.' Recent developments in the EU brought forward the alleged meeting between Germany's and France's administrators. In May 2010, European Financial Stability Facility was established. Member states can benefit from the fund in the case that they are unable to borrow from the market sufficient amount of funds at a reasonable cost, provided that they agree to implement an economic program commonly decided by the IMF and the European Commission. Total amount invested in this fund by member states is €440 billion. With the contribution of the IMF, the fund sums €750 billion.
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What comes with FED goes with FED
Fatih Özatay, PhD
28 November 2010
'FED's balance sheet will not remain at this size. Neither will the interest rates.' One distinguishing feature of the year 2010 when Turkey is concerned is that foreign exchange (capital) inflows are mainly short-term. In the first nine months of the year the amount repaid by the corporate sector was US$5.5 billion higher than the amount of the long-term credit borrowed. This difference for the banking sector was US$0.4 billion. Foreign direct investments, frequently declared to be the most desired sort of capital inflows, dropped significantly to only US$4 billion. I would like to stress the 'only' part because this amount is significantly low compared to the 2006-2009 period.
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Will Cudi Mountain be opened for tourism?
Güven Sak, PhD
27 November 2010
Infrasturcure seems to be the most critical impediment to the development of the region. Let me continue sharing the impressions I got on the Mardin-Şırnak line with some quick notes. As you walk around in the Anatolia, you cannot avoid witnessing that the institutional and financial infrastructure of Turkey has greater difficulty day by day in bearing the ongoing transformation process. I think it is inevitable that the inventory of government debt securities (GDSs) will rise in the near future.
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Pleasing things happen in the Tigris region: Views from Mardin-Şırnak, Episode 1
Güven Sak, PhD
26 November 2010
Pleasing things happen in Şırnak. It was quite pleasing to see the EU flag hung on TDA's wall The day before, on November 24, I was in Şırnak. The weather was nice. The Peak of Cudi Mountain was misty as always. Cudi seemed very magnificent. And Şırnak was not at all like what we are used to hear or read. I had a great time in Şırnak on November 24. This time pleasant things are happening in the Tigris region. The first impression I got was a series of pleasant surprises. So, those willing to hear the impression I got in Mardin-Şırnak, please join me down the article.
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An interesting comparison on taxes
Fatih Özatay, PhD
25 November 2010
Ireland's tax revenue is higher than Turkey's. Ireland has finally agreed to design and implement an economic package in cooperation with the IMF and the EU. The reason for Ireland' reluctance to sign this program was that such program would force it to raise tax rates. The country carried out a number of reforms in the context of the development attempt launched in mid 1980s part of which included tax reform. In Ireland corporate sector is obliged to pay 12.5 percent of its revenues in form of tax. Low tax rates are not to blame
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Can the crisis in Ireland work for the benefit of Turkey?
Güven Sak, PhD
23 November 2010
Ireland's crisis is beneficial for Turkey in the short term; but it only makes things harder for us in the long term. The question asked at the title is the main problem of the blue planet of ours nowadays. This ominous question that comes to mind at any development challenges the operation of G20. The path to solution prolongs since everyone seeks a way to land on their feet. Now let me answer the question first: Ireland's crisis is beneficial for Turkey in the short term; but it only makes things harder for us in the long term.
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Other countries do not remain passive
Fatih Özatay, PhD
22 November 2010
While we were enjoying the holiday, South Korea introduced additional measures to discourage short term capital inflows. 'Not meeting' with Ireland today seems to be the best option. I had envisaged the risk of accusations of being the 'Ireland inside us' but I never foresaw that I would face resistance. It seems that friends preparing the column to press did not like my way of defending Ireland strongly. The title of the figure which is the cornerstone of my comments supporting Irish friends in their hard times, reading 'you are the sons of a nation which has accomplished a lot over the last twenty five years' somehow was printed as 'Comparison of per capita income in Spain and USA'. Err is humane; but I want to assure my Irish brothers that this time it was not my mistake.
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Ireland’s independence
Fatih Özatay, PhD
21 November 2010
'Ireland's current state reminds me of what Turkey had gone through on the eve of the 2001 crisis.' We were in holiday whereas there they were worried about the future of Ireland. The crisis in Ireland continues with pace. Ireland has always been a country which was exemplified as a role model for successfully closing the welfare gap between developed countries and Irish economy. I am okay with being the 'Irish inside us'; despite all I will present the success of Ireland since mid 1980s with a figure. Is not this why good friends are here for?
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