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.


Hakan Berument

Subjects: economics and finance, financial economics and regulation


Hakan Berument I read the chapter, and enjoyed it very much as it was a great learning experience for me. This chapter looks at the effects of the monetary policy setting in the euro area and how this affects Turkey. The chapter has three parts. The first part suggests the optimum monetary policy strategy setting that the central banks should adopt and compares this with European Central Bank practices. The second part examines the transmission mechanism of monetary policy in the euro area to the new member countries. The third part discusses the influence of European Central Bank practices on Turkey. Since the conference is on the possible effect of the EU membership of Turkey on economic outcomes, my comments will focus on the third part. The authors present Turkey’s membership as a threat to price stability due to the different inflation dynamics of each country and heterogeneities in the transmission. It is true that various shocks (including money supply and supply side shocks) affect economic performances differently across countries. For example, increased input prices may benefit some countries and hurt others. Even if the input price increase (say oil) accelerates inflation for all the countries in the euro area, this increase may be more immediate and shorter in duration in some countries but more persistent elsewhere. Here, I would like to elaborate on the issue of tight monetary policy in the euro area. Due to the depth of financial...

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