Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. European Department.
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| ISBN: | 9781451915624
1451915624
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| Notes: | At head of title: European Department.
"October 2008."
Includes bibliographical references (pages 28-31).
Print version record.
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| Summary: | The Turkish economy is typically characterized as having particularly high real interest rates. Fundamental considerations, such as high growth rates or high returns to capital, do not provide a satisfactory resolution of this puzzle. Instead, we find that two other factors--doubts about the sustainability of disinflation and the existence of a risk premium--have a significant impact on the level of real interest rates in Turkey. Importantly, fiscal policy variables are shown to affect both these factors, suggesting that a more credible and prudent fiscal policy can help reduce real interest rates in Turkey.
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| Other form: | Print version: Kannan, Prakash. Perspectives on high real interest rates in Turkey. Washington, D.C. : International Monetary Fund, ©2008
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