Institute of International Finance February 18, 2021

Global Macro Views: Macro Rebalancing in Turkey

Robin Brooks · · Ugras Ulku

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About this work

Slowing credit offered Turkey a route away from consumption driven external imbalances in early 2021. Robin Brooks, Jonathan Fortun and Ugras Ulku connect the previous year’s credit expansion with reserve losses and a wider current account deficit. They argue that preventing excessive lira appreciation would help redirect the economy toward exports and investment.

Abstract

Slowing credit offered Turkey a route away from consumption driven external imbalances in early 2021. Robin Brooks, Jonathan Fortun and Ugras Ulku connect the previous year’s credit expansion with reserve losses and a wider current account deficit. They argue that preventing excessive lira appreciation would help redirect the economy toward exports and investment.

Cite this work

Robin Brooks, Jonathan Fortun, Ugras Ulku (2021). Global Macro Views: Macro Rebalancing in Turkey. Institute of International Finance.