Turkey in 2000’s

Although the global financial crisis that prevailed in the past two years has not affected the Turkish economy directly, it definitely had negative effects on the growth rate. In parallel to these developments, Turkey entered a stand-by arrangement with the IMF. The target variables considered in this agreement covers the economic issues on public sector balance, primary surplus, public sector borrowing requirement, international reserves and net domestic assets as variables targeted. In order for the program to be successful, structural reforms and macro-economic policies were put into effect, accordingly. The policies include bringing the inflation and real interest rates down to reasonable levels, increasing the economic growth and providing an efficient and fair allocation of resources. In addition to the income policy, currency and monetary policies will also be implemented in order to support these targets.