The destruction of Erdogan’s obstinacy of interest is great: ‘Nas’ bill pays the worker

President Recep Tayyip Erdogan’After the announcement of the new cabinet, the Ministry of Treasury and Finance was appointed. Mehmet Simsek, at the ceremony held yesterday Nureddin Nabati’took over from Şimşek announced that the first target would be the fight against inflation, while declaring that the economy would return to rational policies. Economists, on the other hand, are of the opinion that the bill resulting from the 5-year policy will be paid by the workers. The return in economic policies is in mind. “Why did we pay this price” left the question.

Şimşek, who also served as the Minister of Treasury and Finance between 2009-2015, gave hints of the economic policies he will implement with the statements he made yesterday. Şimşek’s message showing that he will be in favor of orthodox economic policies “We will prioritize macro-financial stability” while he said:

“We will start our medium-term financial studies without wasting time. Reducing inflation to single digits in the medium term, increasing predictability in all areas, and structural reforms that will reduce the current account deficit are vital. Transparency, consistency, predictability and compliance with international norms will be the main principles in achieving the goal of raising social welfare.”

Şimşek’s statements revealed that the New economic policy (YEP), which was put into practice after 2018, after the transition to the presidential government system, will change. Despite all objections and warnings, President Erdogan The central bank’By taking away the independence of the Republic, he began to appoint the president himself. Erdogan, who is a religious reference and based on the belief that interest is haram. “how” ideologized by the “Interest cause, inflation result” defended his view. assigned to the Central Bank. Şahap Kavcioglu The interest rate was rapidly reduced to 8.5 percent, followed by exchange rate shocks and official inflation rose to 85 percent.

(Erinç Yeldan)

“Economy will shrink”

Economist Erin Yeldan, He stated that an orthodox stabilization program could be followed with Şimşek. Yeldan underlined that this situation will shrink the economy and gave the following information:

“It is understood that Şimşek and the Central Bank or other economy management are mostly composed of names aimed at giving confidence to foreign financial capital. The economic management that Şimşek will follow will be based on traditional conservative austerity policies. It will be aimed to give confidence to local and international financial capital through this image. The economic consequences of this will inevitably depend on contractionary monetary and fiscal policies. Alternatively, the costs of these restrictive policies should be reflected on the capital, not the working class, as much as possible. For this, it would be appropriate to try to compensate for the effects of these contractionary policies on labor by methods such as the taxation of hot money, taxation of zoning rents, and even carbon and environmental taxes. However, I do not expect the Mehmet Şimşek team to have such a design. We can say that the rematch of the resources provided to the employees with their pre-election labor will be taken back as the rising cost of living and unemployment.”

(Selva Demiralp)

“WHO WILL GIVE THE ACCOUNT?”

Economist Prof. Dr. Selva Demiralp also “The arrival of Şimşek means acknowledging the failure of YEP and turning a new page. It’s nice so far. Will the national wealth and impoverishment poured out for the NEP be accounted for? Or will the YEP be shelved quietly? Can Şimşek ensure the return of a Central Bank that has no independence to orthodox policies? made its assessment.

(Korkut Boratav)

“INTEREST INTEREST WILL RISE, DIFFICULT DAYS ARE COMING FOR WORKERS”

Economist Prof. Dr. Korkut Boratav, Şimşek’s arrival at the ministry “A return to the neoliberal macro policy prescriptions expected from him as finance minister. That is why the outside world evaluated this change positively.” interpreted in his words.

Adding that the expectations have become uncertain around the question of how much this will continue, Boratav said:

• By replacing the head of the Central Bank, the impression of autonomy will be created. It will be on the agenda to gradually increase the policy rate on a monthly basis.
• Generally, a policy rate above the target inflation rate is recommended. Since these scissors are very wide in Turkey, it is normal to do it step by step. This is what the outside world expects.
• During the election process, there were promises to increase the minimum wage and pension. Will austerity be applied in fiscal policies? It is doubtful for now that he will do this in the Turkish environment. Because there is a critical local election. The President cannot afford to run for election in a shrinking economy.
• In addition to today, Turkey will enter into a two-year stagnation and even a contraction after 2024. After the effect of the increases in wages wears off, a more difficult process will begin for the workers.