1.

Record Nr.

UNINA9910464258503321

Autore

Kannan Prakash

Titolo

Perspectives on high real interest rates in Turkey / / Prakash Kannan ; authorized for distribution by Graeme Justice

Pubbl/distr/stampa

[Washington, District of Columbia] : , : International Monetary Fund, , 2008

©2008

ISBN

1-4623-1139-3

1-4527-1678-1

9786612842023

1-4518-7109-0

1-282-84202-1

Descrizione fisica

1 online resource (33 p.)

Collana

IMF Working Papers

IMF working paper ; ; WP/08/251

Altri autori (Persone)

JusticeGraeme

Disciplina

332.82

Soggetti

Interest rates - Turkey - Econometric models

Risk - Turkey - Econometric models

Fiscal policy - Turkey - Econometric models

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Sommario/riassunto

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