Why are we the only ones who witness such developments?
Güven Sak, PhD
18 February 2011
Egypt was the eighth best performing country among the 135 countries. Turkey is the twenty-fifth. Which countries have demonstrated the best performance with respect to human development over the last 4 decades? I had skipped this until I came across an article on Dani Rodrik's web site yesterday. Then I read the 2010 Human Development Report (HDR). Hang on to your hat: six out of ten countries that have ensured the most rapid improvement in the life standards of their citizens over the last four decades are Arab countries: Oman, Indonesia, Saudi Arabia, Tunisia, Morocco and Algeria. If you wonder what is it that has thrown off-balance the entire geography from Tunisia to Egypt and than to Libya, Yemen, Jordan, Palestine and finally Iran, you can now stop doing so. What has shaken those co
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Different income comparisons
Fatih Özatay, PhD
17 February 2011
'Corrected' income figures calculated on the basis of the prices of goods and services and of the methods also differentiate. Comparison of per capita income across countries is a tricky business. Income of a particular country is calculated in terms of that country's domestic currency. Calculated incomes can be stated in terms of a single currency by using the valid exchange rates. However, this does not solve the problem completely for two reasons.
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Turkey needs a new policy on Palestine
16 February 2011
We are going through a period in which the Middle East is being thrown off-balance. Regimes either have changed or are being shaken in Arab countries. Turkey is following these developments closely as due to the intensified integration with the Middle Eastern economy in the recent period, the developments in the region concern its economic policy as well as foreign policy.
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Egypt will be a role model for Turkey
Güven Sak, PhD
15 February 2011
We are on the bottom rung yet. I believe that the developments in Egypt will affect Turkey, too. Unprecedented movements have been observed in both Tunisia and Egypt. Opinions claiming that "Turkey is the model country now" really amuse me. I am not of that opinion. I believe that Egypt will be a role model not only for Turkey, but for the entire world. Let me tell you why. What has been the determinant trend of the last two decades?
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Egypt and Tunisia: Some other indicators
Fatih Özatay, PhD
15 February 2011
It is not possible to explain the recent movements in Tunisia and Egypt referring only to economic indicators. I want to address some other indicators on Egypt and Tunisia. The key question is: Is it possible to explain the recent movements in Tunisia and Egypt referring only economic indicators?
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Were interest rate decisions made by a single official?
Fatih Özatay, PhD
12 February 2011
The claim that the interest rate decisions are made by a single official probably stems from the fact that in the implicit inflation targeting period the decision was not made by the MPC. You probably have seen in press. It is argued that 'until recently' the interest rate decisions of the CBT (Central Bank of Turkey) were made by a single official (clearly referring to the Governor of the CBT). Is this true? You might as where on earth did this question come from now. I have a personal motivation. I also worked at the CBT in the referred period and I was of belief that I had an important role in the interest rate decisions. If the mentioned decisions were made by a single official this implies that I worked at the Bank for five years with no use to anyone. This would not be nice. Did I do
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Children of globalization are the new kids at Tahrir Square
Güven Sak, PhD
11 February 2011
This time the rebels are not dispossessed. It seems that the winds have changed. Yesterday they were carrying on protests and blowing whistles in a civilized way in Ankara and Istanbul. Today they set up camp in Cairo in Tahrir square. The children of globalization are on the go. In the past, dispossessed used to rebel. Today those on the streets are not dispossessed. Globalization is like a box of nails and the generations nurtured by it have started shaping the world. This is how I read the recent events unfolding in Egypt.
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For the CBT not to be questioned
Fatih Özatay, PhD
10 February 2011
The CBRT needs support in ensuring quantitative tightening. Otherwise the new policy framework will further be questioned. Last week two important indicators were announced. The data was quite favorable: a marked decrease in inflation and a striking increase in production. I will try to evaluate these developments in the context of the Central Bank's (CBT) new policy framework.
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Egypt and Tunisia: Two indicators
Fatih Özatay, PhD
08 February 2011
Based on my observations on the streets, Egypt and Tunisia appear as poor countries. I have no data on income distribution. Today I want to examine two macroeconomic indicators for Tunisia and Egypt. I do not have the knowledge to make an economic assessment for these countries. Therefore, I will settle with comparing the selected macroeconomic data with that for other countries.
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One eats, the other watches: without fail, eventually a crisis erupts.
Güven Sak, PhD
08 February 2011
In this age during which what one person eats can be seen easily and immediately by the other, what the Left has been saying for decades is proved even more correct. The IMF finally has come around to what the Left has been arguing for decades. Yes, and now for a new work by the IMF: One eats, one watches, and from that all Hell breaks loose. Can the global crisis be the outcome of the unequal income distribution that was reinforced in the period preceding the crisis? An IMF study published in late 2010 answers this question positively in general. The research emphasizes that given the cost of the crisis; it would have been wise to implement income redistribution policies before the crisis. This is exactly what the Left has been arguing for years. What is this? What does it imply? How can
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