A brief history of Central Bank independence in Turkey
March 19, 2015
I’ve written a short piece taking a longer view of the ongoing tug-of-war between the government and Turkey’s Central Bank.
The piece argues that current speculation about the Bank’s independence should not be seen in isolation, but considered within the context of the government’s long-flagging enthusiasm for the economic reforms passed after the meltdown of Turkey’s financial sector in 2000-01. The jettisoning of long-term economic planning is one side effect of President Erdoğan’s bid to centralise all power in his own hands, and could herald a period of severe economic turbulence in the country.