Economic warning from Prof. Dr. Fatih Özatay: Emphasis on structural reforms in the fight against inflation
Prof. Dr. Fatih Özatay stated that interest rate cuts alone will not be sufficient in Turkey's fight against inflation, emphasizing that structural reforms and institutional oversight mechanisms are of vital importance.
Economist Prof. Dr. Fatih Özatay stated that Turkey needs to go beyond monetary policy in its fight against inflation, warning that early or aggressive interest rate cuts could re-trigger inflation.
While predicting that year-end inflation will not fall below 30%, Prof. Dr. Fatih Özatay stated that maintaining the 21% target for 2027 is important, but that frequently changing forecasts weaken expectation management. Özatay noted that the solution lies not only in monetary policy, but also in the judicial system, the autonomy of TurkStat (TÜİK), the Public Procurement Law, and structural industrial policies.
Evaluating the institutional structure, Özatay argued that fund crises occurring despite structures such as the BRSA (BDDK), CBRT (TCMB), and CMB (SPK) reveal systemic gaps. Emphasizing that 'cross-check' mechanisms between institutions need to be developed, Özatay interpreted the increase in the use of the Yuan in international trade as a trend toward the decline of the US hegemony in global payment systems.
Sources
- ekonomim.com · Link