Turkey’s high current account deficit has been at the core of macroeconomic policy discussions in recent years. Quantifying the role of cyclical factors in driving the current account fluctuations is essential for designing an appropriate policy response and evaluating the impact of policy...

This paper analyzes the changes in the structure of trade as well as the developments in the capital account of Turkey since mid-1990s and discusses the possible composition of trade flows and Turkey’s attractiveness for international capital inflows in the near future. Analysis of the...

The current account balance is an important indicator of any economy’s performance and it plays several roles in policymakers’ analyses of economic developments. First, its significance comes from the fact that the current account balance, reflecting the saving-investment ratio, is closely...