Macroeconomic Outlook After years of full of challenges, Pakistani economy is now out of the woods with high-single digit GDP growth rates projected for the upcoming two years. Even if the country still faces some significant political risks and has some vulnerabilities due to high…
One basic problem of Turkish economy is that the large current account deficit which is expected to equal to 4.5% of total Gross Domestic Product at the end of this year. When this is the case, the short term capital inflows and foreign direct investments…
Turkey today posted better than expected current account deficit after naming the deficit as the second most important economic challenge after inflation in its Medium Term Plan. According to the posted official figures the deficit in August was $2.77 billion which is well below the…
One of the major roles of banks is to channel funds from savings into valuable projects. In doing so, banks engage in liquidity and maturity transformation, since they finance long-term, illiquid project while funding themselves with short-term, liquid abilities. By performing this important role, banks…
What sort of crisis is now confronting the emerging world? The question commonly has been a matter of debate for a while. One thing most economists seem to agree on is that this is not a replay of the late 1990s. There are no exchange-rate…
In a previous post, I noted that the shape of things to come in Turkey is getting similar to that of economic crisis occurred in South Korea in late 90s. I accept that in term of economic dynamics, South Korea differs much from Turkey as…