How Central Bank of Turkey Saved PM Erdoğan’s Derrière

I couldn’t help but notice several misconceptions about Tuesday’s midnight’s emergency rate hike. Here is the introduction to my latest Hurriyet Daily News (HDN) column. One of those misconceptions gave the column its title. To quote directly from the column: “Some have also argued that the rate hike hurt the ruling Justice of Development Party’s […]

China-EU Investment Pact on the Right Track

The China-EU investment talks have begun. Due to different levels of economic development, each side has different strategic goals. Nonetheless, the bilateral talks are on the right track. Last week, China and European Union had their first round of talks for an investment pact. While both parties hope to start a new decade of broader […]

Total US GDP Grows 3.2 Percent in Q4. That’s Nice, but Why do We Pay So Little Attention to Per Capita Measures?

According to today’s advance estimate from the Bureau of Economic Analysis, U.S. real GDP expanded at an annual rate of 3.2 percent in the fourth quarter of 2013. That brought GDP growth for the entire year to 2.74 percent, nearly equaling the 2.77 percent of 2010, which was the strongest since the recovery began. As […]

Turkey: InDebted by the Exchange Rate

Government officials have been emphasizing stock prices and bond yields to highlight the economic cost of the graft scandal, while ignoring the asset that could affect the economy the most, the exchange rate. Here is the introduction to my latest Hurriyet Daily News column (HDN). In the previous column, I explained why it doesn’t make […]

The Reliability of Chinese GDP, Revisited

Is growth really collapsing? Reader Steve Kopits doubts the veracity of the current reading on Chinese GDP growth. He writes: The oil stats say China’s growth has been decelerating for a year, and current GDP growth is in the 0-3% range. Is there another historical example of a major GDP driver like China growing at 7.5% and the […]

Turkey Moves, Focus Shifts to Fed

The US dollar is little changed against the major currencies, while the emerging market currencies are more mixed, ahead of the FOMC statement later today.    Global equities are higher.  Core bond markets are lower, while Spain and Italian bonds continue to outperform. The most important development has been the dramatic rate hike by the central […]

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