Macroeconomic Policies for EU Accession

Macroeconomic Policies for EU Accession

Edited by Erdem Başçı, Sübidey Togan and Jürgen von Hagen

What macroeconomic requirements must Turkey meet in its quest to accede to the European Union? This book, with its distinguished contributors – well-known economists and policymakers – examines and analyses these macroeconomic challenges confronting Turkey. Although the focus is on the specific situation of Turkey, the lessons are informative for other candidate countries and the findings directly relevant to the process of European integration.

Comments

Erdem Başçı

Subjects: economics and finance, financial economics and regulation

Extract

Erdem Basçı ¸ This paper is insightful and very helpful in understanding the fiscal stance in Turkey. It points out the chronic problems of Turkey in fiscal domain really well. However, it does not address the significant improvements in fiscal policy and the structural changes that have taken place in recent years. Therefore, in my comments, I would like to emphasize some of the recent achievements. My comments are organized as follows: first, I will present the achievements of the current economic programme. Second, I will summarize how we see the future regarding inflation and fiscal indicators. Finally, I will touch upon some of the issues overlooked in Dr Scott’s paper. Macroeconomic problems of Turkey in the past, namely low and volatile growth together with high and volatile inflation, were mainly due to fiscal imbalances. The aim of the current economic programme is to eliminate these imbalances, strengthen the Turkish economy and place it on a sustainable growth path, by means of an ambitious list of key structural reforms in the fiscal area and the banking sector. Thanks to tight monetary and fiscal policies accompanied by a significant amount of institutional and structural reforms, Turkey has recently achieved a remarkable growth performance. At the same time, inflation came down to single-digit levels after more than thirty years. The gains from the programme are clearly reflected in the high growth rates and low inflation figures. The Turkish economy has been the fastest growing economy among...

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