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Meaningful support to export investments

Despite high price increases and the growing current account deficit, the Turkish economy is ending a quarter in which exports contributed significantly to industrial production and growth. Yes, a significant part of the first quarter performance, which exceeded 20 percent for exports, is due to global price increases and the growth of target markets. However,...

Article
In Foreign Policy

Zeitenwende

The Ukraine war is permanently changing global security infrastructure. The most obvious change is the awakening of the “sleeping giant,” Germany. After the Second World War, Germany transferred defense spending to industry and therefore turned into an economic giant. Now it is moving to a new security-oriented policy. The Germans use the expression “zeitenwende” to...

Article
In Eco Analysis

Why is the calculated and real-feel inflation different?

People have never found the inflation that is released by the government credible. However, credibility has never been as low as it is now. But why? There are many reasons. The frequent management change at the Turkish Statistical Institute (TurkStat), which calculates inflation, is the leading one. In theory, TurkStat is an institution that measures...

Article

Starting the second quarter

We have left the first quarter of the year behind expectations. Unfortunately, each year is getting stranger than the last. We entered 2022 with globally unforeseen commodity prices and tension between Russia and Ukraine, followed by a war. We are also facing inflation and cost of living issues in Turkey in addition to this. These...

Article

Stages of establishing a company in Turkey

Legal persons and legal assets that can be established in Turkey are:  •    Liaison Office •    Branch •    Limited company •    Incorporated company Liaison Office Liaison offices are one of the simplest legal entities without legal personality. There is no regulation regarding liaison offices in the Turkish Commercial Code. To establish a liaison office, permission must be obtained from the...

Article
In Eco Analysis

The Central Bank at least knows why there is inflation

We haven’t felt too much of the trouble of inflation until recent much about what kind of trouble inflation is until recently. Previously, there wasn’t a shortage of bread, queues at filling stations, and or bureaucrats who say they increased meat prices to prevent long lines of people waiting at butchers. We didn’t need inflation...

Article
In Our Chief Economist

Capitalism works but not that way

In its modern form, the packaging of the first CDO can be traced back to 1983, though the idea of a CDO originated earlier, i.e. in 1980. It is contemporaneous with the advent of Reagan and Thatcher, the period identified squarely with neo-liberalism in many circles. It changed the whole structure of Western Capitalism, and...

Article
In Our Chief Economist

Global interest rates and soft power

Since the GFC (Global Financial Crisis), there have been serious changes in how the American economy functions. Estimates of two key macroeconomic variables – the neutral interest rate and the natural unemployment rate – have been consistently lower since 2008. Recently Richard Clarida reported that the decline in the neutral real interest rate is a...

Article
In Eco Analysis

We’re pushing our luck with the policy rate!

It’s necessary to draw this analogy once again: “Savings are like cats; they don’t do well when they’re cornered, they attack if they can’t run.” The Treasury and Finance Minister Nureddin Nebati almost proudly said they made the policy rate insignificant. However, in reality, other interest rates – the deposit interest rate, for instance –...

Article
In Our Chief Economist

Energy blues

It is patently obvious that most international conflicts, even civil wars, are related to either fossil fuel deposits or to the distribution trajectory of proven reserves. Ukraine is no exception. However, such an observation doesn’t explain everything. Geopolitics is much more than just oil and natural gas. A timeline of the 20th century could give...