Perspectives on High Real Interest Rates in Turkey /

The Turkish economy is typically characterized as having particularly high real interest rates. Fundamental considerations, such as high growth rates or high returns to capital, do not provide a satisfactory resolution of this puzzle. Instead, we find that two other factors- doubts about the sustain...

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Главный автор: Kannan, Prakash
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2008.
Серии:IMF Working Papers; Working Paper ; No. 2008/251
Online-ссылка:Full text available on IMF
Описание
Итог:The Turkish economy is typically characterized as having particularly high real interest rates. Fundamental considerations, such as high growth rates or high returns to capital, do not provide a satisfactory resolution of this puzzle. Instead, we find that two other factors- doubts about the sustainability of disinflation and the existence of a risk premium-have a significant impact on the level of real interest rates in Turkey. Importantly, fiscal policy variables are shown to affect both these factors, suggesting that a more credible and prudent fiscal policy can help reduce real interest rates in Turkey.
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Объем:1 online resource (31 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students