Reforms that will be implemented as of April by the economy administration and coordinated by the Treasury and Finance Ministry, as mentioned in previous articles, will focus on areas to increase our real sector's capability for action in terms of cost management; in other words, areas where we can make our exporters stronger in global competition.
In addition to a brand new tax architecture to ease the burden on the real sector and increase its maneuverability and a new financial architecture bolstered by a deepened capital market to allow the real sector to reach a broader scheme of financing in better conditions, a new procurement architecture will reward firms that manufacture and export domestic raw materials and intermediate products.
When you combine these steps with a whole new human resources architecture focused on productivity, Turkey can become the most attractive investment center in Eurasia. Economies capture sustainability on 3 basic pillars: stability in growth and development, price stability and financial stability.
One of the important elements to ensure the relationship between these three pillars is that Turkey is perceived as an investable country by domestic and foreign economic actors for fixed capital investments to steadily continue. Continuity of fixed-capital investments brings growth, development and employment and increases price stability with increased production. Financial stability ensures the continuity of fixed capital investments.
Since financial stability supports the real sector with 360-degree inclusivity with sufficiently deepened financial markets, banking, capital, insurance, private pension, leasing, consumer financing and factoring markets. For Treasury and Finance Minister Albayrak, these aspects can make Istanbul an international finance, service and design center for the region. Thus, he is drafting and coordinating new strategies to make Turkey a center of attraction in agriculture, manufacturing, wholesale and retail trade, transportation, logistics and software investment. With the world struggling with so many regional and global economic and political tensions, we will be able to increasingly safeguard our country from this by making Turkey an attractive investment center.
Phase synchronization, exchange rate manipulation
In economic science, the position of "phase difference" and "phase effect" in macroeconomic analysis is an important topic of discussion among academics. The extent of "delay" in the reflection of developments, contraction and expansion observed in the Turkish and global economy on macroeconomic balances, and similarly, the extent to which measures taken by the economic administrations of countries will be reflected by a delay on macroeconomic balances are important areas of analysis. While economists cannot fully agree on this issue among themselves, the fact that analysts of banks, financial institutions and ratings agencies have findings, comments and claims about a country's macroeconomic balances, the value of the country's currency, inflation and its current account balance with such certainty would be considered "technical arrogance" in academia.
From India to Russia, from Brazil to South Africa, from China to Australia, from Indonesia to Mexico, from Argentina to France, from Canada to Turkey, we can find thousands of examples of these reports that tend toward the level of technical arrogance, stepping out of line, even approaching manipulation and crossing the red lines of regulatory institutions. Fines that the U.S. Securities and Exchange Commission (SEC) has levied for biased, intentional, technical errors of analysts over the last 19 years ranges from $1.4 billion to $50 million. Jerry W. Markham's "A Financial History of the United States" is exemplary. Countries, whose money and capital markets are regulated by important rule-making institutions and that are managed by regulatory institutions such as a banking regulation and supervision agency and/or governing bodies such as a capital markets board with regards to the possibility of causing manipulation, question reports that exceed their aim, limit or include technical arrogance.
Coordinated by the Ministry of Treasury and Finance, the positive impact of measures implemented by economic management with regard to growth, employment and price & exchange rate stability is a matter of phase synchronization. While economic management, which defends this fundamental point, indicates each month when compared to the previous month, the balancing and normalization of the economy will gradually increase and expand to a positive state from June onward with the phase effect; ambitious analyses that include technical arrogance towards inflation, interest rates and exchange rates before seeing the data for April and May would increase discussions of manipulation for a field that should be meticulously approached. To summarize, it is part of the natural process to invite and expect financial institutions to work based more on ethical codes and more diligently.