1.

Record Nr.

UNINA9910788342703321

Autore

Kannan Prakash

Titolo

Perspectives on High Real Interest Rates in Turkey / / Prakash Kannan

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 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

Disciplina

332.82

Soggetti

Interest rates - Turkey - Econometric models

Risk - Turkey - Econometric models

Fiscal policy - Turkey - Econometric models

Banks and Banking

Inflation

Investments: General

Interest Rates: Determination, Term Structure, and Effects

Investment

Capital

Intangible Capital

Capacity

Price Level

Deflation

Financing Policy

Financial Risk and Risk Management

Capital and Ownership Structure

Value of Firms

Goodwill

Finance

Macroeconomics

Financial services law & regulation

Real interest rates

Return on investment

Interest rate parity

Exchange rate risk

Interest rates



Saving and investment

Prices

Financial risk management

Turkey

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 rates in Turkey.