Foreign Exchange Regime, the Real Exchange Rate and Current Account Sustainability: The Case of Turkey
During the last two and half decades Turkey has suffered from three foreign exchange crises resulting in considerable loss of income. The paper argues that the country in order to avoid the foreign exchange crisis has to stay away from having too big current account deficits. Noting that under perfect capital mobility there will always be the unavoidable risk of speculative attacks on the currency unless the country resolves its fiscal problems, attains price stability, and achieves a sound banking sector, the paper stresses importance of current account sustainability and highlights shortcomings of current policies pursued by Turkey.
|Date of creation:||Oct 2004|
|Date of revision:||Oct 2004|
|Publication status:||Published by The Economic Research Forum (ERF)|
|Contact details of provider:|| Postal: |
Web page: http://www.erf.org.eg
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:0422. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel)
If references are entirely missing, you can add them using this form.