Central Bank Independence Attacked Again
The 2001 crisis and the following the post-crisis period were important milestones for economic policy-making in Turkey as well as for the monetary policy. In 2002 Turkish Central Bank adopted a modern monetary policy with primary objective of achieving price stability after the bank had been vested with instrument independence in the previous year. Thanks to these efforts, Turkey has been able to keep the annual inflation rates in the range of 4%-12% after experiencing a hyperinflation period in 90s with...
Turkey Current Accout Deficit Widens in September
September’s current account deficit surprised the market to the upside at $3.28bn; the 12-month rolling current account deficit is likely to continue to widen. With this outcome, the gap in the first nine months of the year becomes $49bn, which compares unfavorably with the deficit seen in the same period of 2012 ($38bn). Market consensus error was due to higher than expected gold imports.
There are some developments are worth noting...