In order to avoid the deterioration of the Turkish Lira, the government need to reduce its reliance on foreign capital flows by speeding up structural reforms.
“What are the ratings of credit rating agencies themselves, then? It is well below “credibility” for most people around the world, apparently. With a negative outlook. And no (upward) revision is on the horizon.”
As Turkey is trying to reverse its deindustrialization process and is trying to avoid the middle income gap, the government should take a closer look to the South Korean development experience.
“Time is more than ripe for the TCMB to reconsider its monetary policy stance and take into account real factors such as employment, economic growth, income inequality and, last but not least, the development process of the country when constructing monetary policy function. After all, central banks are for the people, right?”
The decision to hold early elections in Turkey will not have a negative affect on the economy. In fact, it’ll be good for sectors such as housing and tourism.
Developing countries such as Turkey should adopt “low policy interest rate – undervalued exchange rate” regime. This regime is certainly not enough to the industrialization end, but is a must.
The tariffs imposed upon Chinese goods by the U.S. administration and the retaliation from the Chinese government are reflective of a possible trade war between the two countries.
Turkey’s cooperation with many states in the field of energy, including those from the West and East, is not a shift of axis but rather a strategic and pragmatic move.
“Akkuyu will lead the way in Turkey’s quest to enter the global league of countries possessing and utilizing nuclear technology, and it will soon be followed by two more nuclear plants.”
What’s the future prospect for the Turkish economy?