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© 2007 International Monetary Fund

November 2007

IMF Country Report No. 07/364

Turkey: Selected Issues

This Selected Issues paper for Turkey was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on May 4, 2007. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Turkey or the Executive Board of the IMF.

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Selected Issues

Prepared by Kevin Fletcher, Christian Keller, Petya Koeva Brooks, Davide Lombardo, Andre Meier (all EUR)

Approved by the European Department

May 4, 2007


  • I. Introduction

  • II. Safe to Save Less? Assessing the Recent Decline in Turkey’s Private Saving Rate

    • A. Introduction

    • B. Accounting for the Recent Fall in Private Saving

    • C. The Case for Seeking a Higher National Saving Rate

    • D. How Can National Saving Be Increased?

  • III. Should Turkey Adopt a Fiscal Rule?

    • A. Introduction

    • B. The Pros and Cons of Fiscal Rules

    • C. Should Turkey Adopt a Fiscal Rule?

    • D. What Kind of Rule Should Turkey Adopt?

    • E. What Should Turkey Do to Make a Fiscal Rule Credible?

    • F. Conclusions

  • IV. Do Banks Matter for Turkey’s Monetary Transmission Mechanism?

    • A. Introduction

    • B. Previous Literature

    • C. Empirical Strategy

    • D. Main Findings

    • E. Policy Implications

  • V. Economic Implications of Turkey’s New Mortgage Law

    • A. Introduction

    • B. Growth Prospects for Turkey’s Mortgage Market

    • C. Possible Macroeconomic Implications

    • D. Implications for Monetary Policy and Financial Sector Regulation

Turkey: Selected Issues
Author: International Monetary Fund