Turkey is among emerging economies that have experienced sharp declines (in the form of structural changes) in the level of inflation rate since the mid-1990s. Motivated by the availability of better data on financial system characteristics and distributional measures, this brief explores the distributional and welfare impacts of the recent reduction in inflation on the Turkish economy. In particular, the extent of financial dollarization and the inequality in the distribution of demand and term deposits are documented. This brief points out that apart from the classical adverse effects of inflation such as price distortions and wealth eroding; redistributive effects of inflation might be created by the particular way that the fiscal policy responds to the monetary policy.

The activism of late observed in Turkish foreign policy demonstrates a clear preference for a regional approach to international relations. It has been almost a mantra for Turkey’s new foreign policy elite to promote regional actors’ ownership of economic and security affairs in their own neighborhood. Various such initiatives that Turkey has been spearheading recently in its adjacent regions, including the Middle East, Caucasus, Balkans and beyond, underscore Turkey’s emergence as a regional power willing and able to assume leadership roles in those regions. Turkey has been pursuing customs and visa liberalization with many of its neighbors, while initiating strategic cooperation councils with others. Similar to Turkey’s initiation of the Organization of the Black Sea Economic Cooperation in the 1990s, Turkey has also launched a Caucasus Stability and Cooperation Platform. Complementing these efforts are various other bilateral or trilateral processes under its patronage, such as the ones between Bosnia and Herzegovina and Serbia, or between Afghanistan and Pakistan.

Turkey is enthusiastic to playing a driving and constructive role in transportation of the Caspian, Middle Eastern and Central Asian hydrocarbon resources to Europe and World Markets.

The talk of a “new Turkey” is generating lively debates both in Turkey and abroad. Last week we discussed  Washington where the US government was trying to recover from the embarrassment of WikiLeaks.

INSIGHT TURKEY DEBATES   Chair:     İhsan Dağı, Insight Turkey    Speakers:    Kemal Kirişci, Boğaziçi University     Alper Dede, Zirve University      Date: June 2, 2011 Thursday  Saat: 14.00-16.00  Venue: SETA, Ankara

Turkey, after a long time, is undertaking elections to build a new future instead of overcoming a crisis situation.

 SETA PANEL DISCUSSION  Chair:     Taha Özhan, SETA    Panelists:     Ali Çarkoğlu, Sabancı Univ.       Cengiz Çandar, Radikal     Yavuz Baydar, Sabah  Date: June 15, 2011 Wednesday  Time: 14.00-16.00  Venue: SETA, Ankara   

Any regional conflict in the Balkans, would not only allow the countries to drift into turmoil, but would also threaten the security of Europe. 

Turkey has refreshed its social and historical memory of each and every country that experienced change and revolution.

Turkey is so involved in developments in the Middle East that it cannot be a mere spectator to what is currently taking place.

In the wake of the U.S. withdrawal from Iraq, the strategy that regional forces adopt will determine the future of the occupation in Iraq.

The worry is not about the possibility of a war breaking out; it is about the hope of building a new regional order in the near future fading away.

The “New Egypt” will be shaped to a great extent by a “negotiation” process between the army and the political actors in opposition. It is likely that Egypt’s transition to democracy will be a long and difficult process.

SETA PANEL Moderator: Taha Özhan, SETA President Speakers: Müjge Küçükkeleş, SETA, Research Assistant Talip Küçükcan, Director, SETA Foreign Policy Research Egemen Bağış, Minister of EU Affairs and Chief Negotiator  Date/Time: May 10, 2012, THURSDAY 11:00-12:30  Venue: SETA Ankara room, ANKARA

The study aims to analyze European elites’ perceptions of Turkish Foreign Policy under AK Party period.

The Annan Plan was a miracle plan that could have benefited, in the short term, all those who were not disturbed by the bloodshed.

If Turkey’s CHP believes that they are up to the task of running the country, the Syrian crisis may serve as a great opportunity to convince the still doubtful voters.