Mar 07 2018

Erdoğan adviser: Monetary policy should be regulated

Monetary and fiscal policy should be regulated to take account of a country’s “unique conditions”, according to Cemil Ertem, Turkish President Recep Tayyip Erdoğan’s senior adviser for the economy.

“Today, the state is involved and has to be involved in the economy,” Ertem said in a column for the Daily Sabah newspaper. “It regulates the economy, smooths the way of entrepreneurs, addresses monetary and fiscal policies as an issue of economy security and considers them as a means of national development."

In the article, entitled 'Ermerging economies and the new role of states', Ertem said “cliché arguments” that the state should not be involved in the economy and the private sector should do everything “is not only obsolete repetition, but it is also high-level ignorance that cannot read the present day,”

“In emerging economies, the state must make market-oriented public regulations that improve income distribution, make the banking system more robust and allow more efficient use of resources.”

Banks tend to fail the economy when they don’t provide loans in an efficient manner, Ertem said.

“If banks transfer their resources to big monopolies by caring about their size without looking for collaterals, instead of transferring them to exporters and industrial enterprises, and if the related regulatory-supervisory institutions of the state just stick back and watch this, then the banking system and economy will fail in that country,” he said.