Despite strong volatilies in the exchange rate due to global factors, Turkey's economic risk levels are not objectively assessed

When the larger picture that takes the "Trump factor" and rising global economic tensions into account is analyzed, it is clear that the turbulent period in the global economy might be with the U.S. well into the medium term.

Credit ratings might be an essentially political act but Turkey's economic fundamentals and political capacity are robust enough to withstand such pressures.

Turkey should switch its financial system from debt-based finance to equity-based finance to meet the manufacturing industry’s need for new investments.

The negative effects of the failed coup attempt have remained limited due to Turkey’s strong macroeconomic indicators, strong public finance, sustainable current account deficit, private sector efforts and comforting statements of policymakers and economists.

Turkey's current central banking framework was structured in the aftermath of the twin crises in 2000-2001 and reflects the exclusive priority to maintain price stability and control inflation.

As the rotating president and host of the summit, Turkey has made giving a voice to developing countries and emerging markets its main priority on the agenda of its presidency and is looking to reform global governance to provide more inclusiveness in the market.

Given the 2.6 percent growth rate in the first nine months of 2012, the Turkish economy must grow at more than 4 percent in the last quarter to achieve the expected 3.2 percent growth rate in 2012.

Turkey shouldn’t abandon its goal of establishing an alternative rating agency due to Fitch’s upgrade.

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.

Everyone seems to agree that Prime Minister Recep Tayyip Erdoğan read the results of the March 29 elections right. The Cabinet reshuffle last week has created new momentum for the Justice and Development Party (AK Party) government. Yet Erdoğan will have to do more to recapture the reformist spirit of the early years of his rule. 

One often gets this question from academics and experts: What will be the framework of international relations in the 21st century? Will it be determined by "hard instruments" such as energy, security and population?

The results of the March 29 municipal elections go beyond the local scene and will have a bearing on the 2011 general elections. The "message" of the elections, however one reads it, has become the key word. Indeed, the electorate has told political parties, "You've got a message." The question is how to read it. 

With the court case against the Justice and Development Party (AK Party) officially started, Turkey has entered a new period of political uncertainty.

Since 1960, nineteen Standby arrangements have been signed. With these agreements, significant progress has been made in Turkish economy: inflation has fallen to the lowest level since 1986, the public debt-to-GNP ratio has been falling, and interest rates have declined rapidly. IMF’s immediate goals concern exchange rate stability and balance of payments, and evaluations of IMF programs tend to concentrate on these two objectives. Yet, whether or not the IMF programs have positive effects on these short-term goals, what ultimately matters is that they induce economic growth and do not concentrate on incomes.

2007 was no ordinary year for Turkey. Turkish democracy went through major trials. Turkish society became more confident in the exercise of its democratic rights. The Turkish economy continued to grow. Turkey became more active in regional politics. Stability and prosperity shifted the focus from narrow ideological debates to a larger vision for Turkey in the 21st century. But are any of these a guarantee for more progress in Turkey? To put it more bluntly, are the events of 2007 a temporary change of climate, or do they point to a deep-seated change in Turkish politics and society?