Dilemmas and Trilemmas of Turkish Policies in the QE Era



Following every round of quantitative easing (QE) by the US Federal reserve, the Brazilian finance minister Guido Mantega, has warned of trade and currency wars as Brazil’s currency and current account deficit (CAD) reached new peaks. Even in Asia, excluding China, the aggregate current account balance turned into a deficit from mid-2011. Other big emerging markets (EM) like Turkey were no exception. With its CAD at a historical high in 2011, the Turkish Central Bank (CBT) switched to unorthodox policies that aimed for a weaker lira to boost export competitiveness. In early 2013, the East Europeans joined in from Polish Economy Minister Piechocinski to Hungary’s Matolcsy arguing for weaker currencies. As the Japanese central bank initiated its quantitative easing, the Russian Central Bank governor, Ulyukayev declared that the world economy was “on the brink of currency wars”.[1]

Click here to continue

Dr. Mina Toksöz
Dr. Mina Toksöz
Head of Country Risk, Standard Bank Plc | Toksöz, Standard Bank Plc, Kıdemli Uluslararası Ekonomist


  1. Unquestionably believe that which you stated. Your favourite justification seemed to be at the web the simplest thing to take note of. I say to you, I definitely get annoyed at the same time as people think about worries that they plainly do not realize about. You managed to hit the nail upon the highest and outlined out the entire thing without having side-effects , other folks could take a signal. Will likely be back to get more. Thanks


Please enter your comment!
Please enter your name here


Share post:



More like this

Interpreting Emerging Finance Capitalism in Turkey

Turkey has been touted as one of the great...

Technological Structure of the Foreign Trade between Turkey and the EU

Technological Structure of the Foreign Trade between Turkey and the...

The Edges of Civilizations: Turkey and India in the 21st Century

Two of the world’s multicultural nations, Turkey and India,...

Mexico and Turkey: Unlikely Similarities in their Geopolitical Situation with Powerful Northern Neighbors

Mexico and Turkey: Unlikely Similarities in their Geopolitical Situation...