Inflation and Disinflation in Turkey FROM THE PUBLISHER
Inflation and Disinflation in Turkey examines Turkey's experience of inflation from 1963 to the present time. During this period it has gained an outward-oriented development strategyﾽ respectable growthﾽ and become reasonably well integrated with world trade and financial markets. Countering this positive picture of the Turkish economy over the last two decadesﾽ howeverﾽ is the incompleteness of its reform process: the boom-bust nature of its growthﾽ persistently high inflationﾽ delays in privatizing state-owned enterprisesﾽ and high and persistent government budget deficits.
Despite embarking on an IMF backed stabilization program in 1999ﾽ Turkey has still experienced two financial crises and has accordingly redesigned its stabilization program to bring inflation down more gradually. This study of a pivotal State with a rich economic history will be of great interest to researchers of developmentﾽ the IMFﾽ and of macroeconomic stabilization policies.
Author Biography: Aykut Kibritçioglu, Dr, Associate Professor of Economics, Visiting Scholar at Department of Economics, University of Illinois at Urbana-Champaign, USA; Libby Rittenberg, Professor of Economics, Colorado College, USA; Faruk Selçuk, Assistant Professor of Economics, Bilkent University, Turkey
SYNOPSIS
Nine contributions examine economics programs instituted by the Turkish government under the tutelage of the International Monetary Fund. Following an introductory overview of the macroeconomic performance of Turkey between 1980 and 2001, three chapters explore sources of inflation, with particular attention paid to budget deficits and debt sustainability. The remaining articles look at such topics as inflationary expectations and the costs of disinflation, inflation and real output growth from 1963 to 2000, seigniorage and currency substitution, and the impact of one disinflation program on the structure of the Turkish banking structure. Annotation c. Book News, Inc.,Portland, OR
WHAT PEOPLE ARE SAYING
Turkey over the last two decades provides a cautionary tale on the perils of inflationary and disinflationary policy. The authors have employed the tools of time series econometrics to explore the implications of Turkish macroeconomic and financial-sector experience, and have assembled an analysis of the Turkish dilemma that will be of great use to developing-country policy-makers everywhere. (Patrick Conway, Professor of Economics, University of North Carolina at Chapel Hill, North Carolina, USA)
— Patrick Conway
This timely volume brings together expert views on the sources of decades long chronic inflation in Turkey and implications of the disinflation. Its coverage provides lessons for other high inflation economies. This unique volume is an excellent reference for academics and specialists. (Ramazan Gencay, Professor of Economics, University of Windsor, Ontario, Canada)
— Ramazan Gencay
This is a long overdue book on Turkey's unhappy experience with macroeconomic policy during the last two decades, which culminated in a devastating crash in 2001. To their credit, the authors refuse to resort to simple-minded explanations. Loose fiscal policy, inadequate structural reform, poor oversight of the financial system and ill-advised IMF policies all play a role in the story. But the main theme running through the authors' sophisticated analyses is the complexity of an economy caught between an immature political system and even more fickle financial markets. (Dani Rodri, Professor of International Political Economy, John F. Kennedy School of Government, Harvard University, USA)
— Dani Rodri
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