1.

Record Nr.

UNINA9910961116903321

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

9786612842023

9781462311392

1462311393

9781452716787

1452716781

9781451871098

1451871090

9781282842021

1282842021

Edizione

[1st ed.]

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

Capacity

Capital and Ownership Structure

Capital

Deflation

Exchange rate risk

Finance

Financial Risk and Risk Management

Financial risk management

Financial services law & regulation

Financing Policy

Goodwill

Inflation

Intangible Capital

Interest rate parity

Interest rates

Interest Rates: Determination, Term Structure, and Effects

Investment

Investments: General



Macroeconomics

Price Level

Prices

Real interest rates

Return on investment

Saving and investment

Value of Firms

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.