Implications of the European Monetary System for Turkey

Abstract

The objective of this study is to analyze the economic differences between Turkey and the members of European Monetary System, and discuss the membership with its costs and benefits and structural constraints. According to the comparisons in terms of inflation level, GNP, competitiveness, exchange rate regime, structure of labor force, there are gaps between Turkey and member countries of the EMS. When those economic differences, structural constraints and their impacts on the Turkish economy are considered, Turkey should not consider membership to the EMS