ISE review

Can there be any other prospect more rewarding and exciting than providing the anti-inflationist economic program, decisively put forward in the form of a three-year “stand-by” agreement by the 57^th government of the Republic, with a perspective of what we as a nation wish to achieve in the 100^th year of our Republic.

Turkey in 2000’s
Mahfi Eğilmez

Abstract

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.

The Relationship between Inflation and Growth
Gazi Erçel

Abstract

In the economic literature, the relationship between growth and inflation has been discussed in different ways with respect to the development stages of the world economy. According to the current view, there is a negative relationship between growth and inflation. This seems to be compatible with the fact that the investments and the economic growth has been negatively affected by the high and chronic inflation rates in Turkey in the last 20 years. Thus, improvement of the long-run growth potential depends on the elimination of the uncertainties that stems from high inflation.

Recent Developments in Turkish Economy, Economic Policies for the Year 2000 and Effects of these Policies on Financial Markets
Selçuk Demiralp

Abstract

In 2000, Turkey will pursue an insistent economic program that aims to decrease inflation. The program supported by the IMF with a stand-by agreement, includes the reduction of the public sector deficit, completion of structural reforms, achievement of progress in privatization efforts, new income and exchange rate policies.

Innovations Adopted by the Revised Capital Markets Law
Muhsin Mengütürk

Abstract

The Law No. 4487 that amends the Capital Markets Law was made with an aim of providing an opportunity for new formations which will raise the capital markets in Turkey to the level of the capital markets in developed countries. The new Capital Markets Law is comprised of new regulations on changes concerning the criterion for public corporations, minority rights, establishment of a futures market, formation of the association of the capital market intermediary institutions, protecting investors etc.

A Contemplation on the Istanbul Stock Exchange in 2000 and Beyond
Osman Birsen

Abstract

Celebrating its fifteenth anniversary in 2000, the Istanbul Stock Exchange that has surpassed a fast growth period is progressing with confident steps towards taking its place among the top stock exchanges in the world.

World Gold Markets, Istanbul Gold Exchange and Gold in Risk Management
Serdar Çıtak

Abstract

The establishment of Istanbul Gold Exchange (IGE) is the most important stage in the Turkish gold sector restructuring process. IGE has provided a competitive formation in prices and the price differential between Turkey and international markets has been cut dramatically. Today, Turkish investors can buy and sell gold in international prices in the IGE Precious Metals Market. Gold is accepted as a hedge tool against inflation and as a safe haven in economic crisis, world-wide. Gold is the only assets which has negative or close to zero correlation with stocks and bonds/bills, meaning that its price tends to move in the opposite direction from them. Because gold is negatively correlated with stocks and bonds/bills, its inclusion in an investment portfolio leads to a considerable reduction in the volatility of that portfolio. This reduction in volatility in turn improves portfolio performance.

Significance of the Southeastern Anatolia Project in the Turkish Economy
Kenan Mortan

Abstract

Southeastern Anatolia Project which will play a significant role in the regional development, is becoming more a solution for the needs of the Middle East rather than a national occasion.