Macroeconomics of Twin-Targeting in Turkey: A general equilibrium analysis Ebru Voyvoda & Erinc Yeldan

The post-1998 Turkish macroeconomic adjustments reveal speculative-led growth patterns with limited employment creation and a widening foreign deficit together with increased foreign indebtedness. The paper provides an overview of the post-1998 Turkish economy and constructs a macroeconomic general equilibrium model to illustrate the prevalent fragilities in the financial and commodity markets and also study viable policy alternatives to the current Programme over the medium run, spanning 2006-2010.

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