Warning from Mahfi Eğilmez: Economy Is Not Just About Indicators
Mahfi Eğilmez stated that reputation, trust, and expectations play a critical role in the economy, drawing attention to the importance of the rule of law and institutional structure.
Economist Mahfi Eğilmez emphasized that the economy does not consist solely of plans and programs, and that trust, expectations, and institutional structure also play a vital role.
Economy and the Human Factor
While indicators and plans are on one side of the economy, reputation, trust, and expectations are on the other. While classical approaches treat the economy like a mechanical system, there are humans, not machines, inside the economy, and humans make decisions based on their expectations for the future.
The Power of Expectations
Consumers and producers shape today's price and wage policies according to future inflation expectations. This situation shows that expectations are not just a prediction, but an element that directly affects future economic outcomes.
Turkish Economy and Indicators
Leading indicators such as Central Bank expectation surveys and PMIs make it possible to monitor the forecasts of market participants. However, when expectations deteriorate, it becomes quite difficult to fix the economy simply by changing interest rates.
Rule of Law and the Element of Trust
When making decisions, investors look not only at today's interest rate, but also at what the legal environment will be like in the coming years. The rule of law, transparency, and predictable institutions are of great importance for economic stability.
Trust is Essential for Lasting Balance
To bring the economy into a lasting balance, it is not enough to just use economic tools correctly. It is essential to establish a predictable and transparent environment where people can look to the future with confidence.