Duran Bülbül evaluates Erkan's resignation: 'Tight monetary and high-interest rate policy has collapsed'

Providing an immediate assessment regarding Erkan's removal from office via an Official Gazette decree, Bülbül declared that the tight monetary and high-interest rate policy that had been attempted to be maintained has collapsed.

Duran Bülbül wrote the following regarding the resignation:

They had said that with the rhetoric of tight monetary and fiscal policy, they would return to the rational ground required by the real economy as a result of appointing Hafize Gaye Erkan to head the Central Bank and Mehmet Şimşek to head the Ministry of Treasury and Finance.

However, from the day they took office until today, the name of the tight monetary and fiscal policies became high interest and high exchange rates, instead of the low-interest policy that resulted in the bankruptcy of the President's 'nas' (religious-based) policy. The dimension of fiscal policy became high taxes and high price hikes. Apart from this, no other policy was put forward. As a matter of fact, it turned out that the policy interest rates implemented to suppress foreign currency and curb demand could not suppress the currency, and since the high-interest policy increased the cost of production, the poor public once again paid the price for the tight monetary and high-interest rate policy.

However, the process of the Central Bank governor's removal from office began at the beginning of January when her father was leaked to the press. On January 21, I stated on my social media account that this was a game, that the ground was being prepared for her removal, and that the press was senselessly stirring up a storm.

It is a fact that the government forced the Central Bank governor to resign because they could not explain her removal from office in such a short time as 6 months to both our country and foreign markets. Once again, the culprit for the rising interest rates and rising exchange rates was found by the government, and the Central Bank governor was chosen as the culprit. Since they could not explain her removal to the market, she was made to resign. This resignation means that the high-interest rate policy will be abandoned.

This situation means the collapse of the tight monetary, high exchange rate, and high-interest rate policy. In short, they had said in the government's own words that they would return to rational ground, but with this resignation, that ground has collapsed once again. What remains is the Minister of Treasury and Finance Mehmet Şimşek, who says he will implement a tight fiscal policy. Mehmet Şimşek's tight fiscal policy had already collapsed with the 2024 budget. May the same fate await Mehmet Şimşek..

Prof. Dr. Duran BÜLBÜL

News Source: 12punto