Browsing by Subject "Fiscal policy"
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Item Open Access Fiscal policy in Turkey and the transitional economies of Europe(Palgrave Macmillan, London, 2001) Uluğbay, Hikmet; Zaim, Osman; Togan, Sübidey; Balasubramanyam, V. N.This chapter presents a comparative study of public finance issues in the Central and Eastern European (CEE) countries, the Baltic countries and Turkey. Section 4.1 considers fiscal policy and economic restructuring. Section 4.2 looks at tax reform and Section 4.3 analyses expenditure reform. Privatisation is discussed in Section 4.4, and problems related to social safety nets and social security are discussed in Section 4.5. The last section presents some conclusions.Item Open Access IMF programmes, fiscal policy and growth: investigation of macroeconomic alternatives in an OLG model of growth for Turkey(Palgrave Macmillan Ltd., 2005) Voyvoda, E.; Yeldan, E.In this paper, we investigate the fiscal policy alternatives on domestic debt management and public expenditures on education, cohort welfare, and growth for the Turkish economy. We utilise a growth model in the overlapping generations (OLG) tradition with intertemporally optimising agents and open capital markets, calibrated to the Turkish economy in 1990s. We examine the macroeconomic effects of the current IMF-led austerity programme driven by the objective of attaining primary fiscal surpluses and illustrate the ruinous effects of constrained human capital investments due to insufficient funds to public education, and constrained real production activities due to the current mode of financing of domestic debt. We then examine various taxation alternatives to mitigate the reductions in the availability of public funds to reproducible factors of production. Our results suggest that the current fiscal programme based on the primary surplus objective suffers from serious trade-offs on growth and fiscal targets, and that an alternative public expenditures programme with the objective of reviving public funds for education and for social infrastructure is likely to produce superior economic performance.Item Open Access Inflation dynamics and its sources in the Ottoman Empire: 1586-1913(Routledge, 2007) Berument, Hakan; Gunay, A.This study examines the dynamics and determinants of inflation in the Ottoman Empire during the 1586-1913 period. There are two possible reasons for inflation: fiscal expansion and monetary expansion, which could be generated through the debasement of local currency (Akçe). We used a set of political and structural variables in order to explain the change in inflation dynamics. In particular, we considered the war years, periods of Ottoman history that show different characteristics (the slow-down period, the recession period and the break-up period) and the period of constitutional monarchy. Moreover, we tested whether the inflation process was the same for each sultan and whether each sultan's behavior during the first year was different from the rest of his reign. The empirical evidence reported here suggests that war accelerated inflation as expected and fiscal expansion rather than the debasement of the Akçe was the main reason for inflation. Moreover, the slow-down, the recession and the break-up periods affected inflation positively; both fiscal expansion and the debasement of the Akçe were seen in these three periods as sources of inflation. While employing different inflationary policies during his reign, each sultan accelerated inflation in the first year of his reign by the debasement of the Akçe or by fiscal expansion. Last, the constitutional monarchy period had a significant positive effect on inflation although fiscal expansion, rather than the debasement of the Akçe was the source of inflation during this period.Item Open Access Introduction(Palgrave Macmillan, 2001) Togan, Sübidey; Balasubramanyam, V. N.; Togan, Sübidey; Balasubramanyam, V. N.The papers that make up this volume were presented at the conference on Turkey, Central and East European (CEE) countries and the EU, held at Bilkent University, Ankara, Turkey, on 9–10 March 1996. A legal structure that promotes entrepreneurship, competition and the institution of prudent monetary and fiscal policies is a prerequisite for membership of the EU. This volume analyses these and related issues in the context of the Turkish and CEE economies.Item Open Access Managing Turkish debt: an OLG investigation of the IMF's fiscal programming model for Turkey(Elsevier Inc., 2005) Voyvoda, E.; Yeldan, E.In this paper we investigate the fiscal policy alternatives on domestic debt management, cohort welfare, and growth for the Turkish economy. We utilize a model of exogenous growth in the overlapping generations (OLG) tradition with intertemporally optimizing agents and open capital markets, calibrated to the Turkish economy in 1990s. We examine the macroeconomic effects of the current IMF-led austerity program driven by the objective of attaining primary fiscal surpluses and illustrate the sensitivity of the program targets to growth shocks. Our results suggest that the current fiscal program based on the primary surplus objective succeeds in containing the explosive dynamics of debt accumulation, and yet, the path of aggregate public debt as a ratio to GNP displays significant degree of inertia and would be brought down only gradually and slowly. © 2005 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.Item Open Access Monetary policy in Turkey after Central Bank independence(BİLGESEL Yayıncılık San. ve Tic. Ltd. Şti., 2015) Gürkaynak, R. S.; Kantur, Z.; Taş, A. M.; Yıldırım-Karaman, S.We present an accessible narrative of the Turkish economy since its great 2001 crisis. We broadly survey economic developments and pay particular attention to monetary policy. The data suggests that the Central Bank of Turkey was a strong inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal anchor is visible in the break we estimate in Taylor-type rules as well as in asset prices. We also argue that recent discrete jumps in Turkish asset prices, especially the exchange value of the lira, are due more to domestic factors. In the post-2009 period the Central Bank was able to stabilize expectations and asset prices when it chose to do so, but this was the exception rather than the rule.