“Ironically, this is the same era in which the rhetoric that central banks around the world gained their “independence” has become widespread. What happened actually was central banks have become dependent on the financial industry, as they were dependent on states in the Bretton Woods era.”
“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?”
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.
With the collapse of the so-called Bretton Woods system—the thirty-year international economic structure—in the tumultuous decade of the 1970s and …