IMF Staff Country Reports

Turkey: Selected Issues

Publication Date:

November 16, 2007

Electronic Access:

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Summary:

This Selected Issues paper on Turkey reviews a decline in private saving and adoption of a fiscal rule. As economic confidence has improved, capital inflows have surged while private saving has fallen. Together, these developments have produced current account deficits and a strong lira, raising concerns that Turkey may be exposed to sudden reversals in investor sentiment. A fiscal rule with appropriate mechanisms to monitor its compliance should deliver predictable policies, thus allowing further reductions in debt and risk premiums, thereby contributing to macroeconomic stability.

Series:

Country Report No. 2007/364

Subject:

Bank credit Financial institutions Fiscal policy Fiscal rules Housing prices Money Mortgages National accounts Prices Private savings