Turkey and Its Central Bank: Turning Heads

When the Turkish government in mid-October removed three members of the Monetary Policy Committee (MPC), the reaction was somewhat predictable. After all, the writing had been on the wall. But what difference does it make to Turkish monetary policy? Recep Tayyip Erdogan, the all-powerful Turkish president, on Thursday, October 14, ousted three key members ofContinue reading “Turkey and Its Central Bank: Turning Heads”

Ray of Hope for New Economic Policy in Turkey

The change was rather abrupt: Recep Tayyip Erdogan exchanged his central bank governor and the finance minister both within a few days in November. Shortly after, interest rates were dramatically hiked to halt the fall of the Turkish lira. If he had planned to surprise the markets, he has succeeded, but observers still question hisContinue reading “Ray of Hope for New Economic Policy in Turkey”