Devlet Bahceli said that they found the government’s economic policies to be correct and that Turkey should get rid of interest.
MHP Chairman Devlet Bahçeli spoke at the group meeting of his party in the Grand National Assembly of Turkey.
Economy was on the agenda of the MHP leader.
Bahçeli touched upon the exchange rate and interest rates, which are the most important agenda items in the recent period.
Expressing that interest is stealing from the future, Bahçeli said that they find the government’s economic policies correct.
“TURKEY SHOULD GET AWAY FROM THE INTEREST HUGE”
State Garden, “Turkey should get rid of the interest hump. Interest causes great damage to the production system in the long run. Our country is currently one of the top 10 countries in the world in terms of high interest rates, and is at the top of Europe.
“GOVERNMENT’S ECONOMIC POLICY IS TRUE”
Interest is stealing from our future. In our opinion, the economic policy followed by the government is correct, to create polemics over it, to say that we are finished, exhausted, burned, ruined is doomsaying, maliciousness.” said.
Devlet Bahçeli: Turkey should get rid of the interest hump ViDEO
Bahçeli’s statements regarding the economic agenda are as follows:
“WE CAN’T SEE THE ECONOMY IN POLITICS SEPARATELY”
“We cannot and cannot separate politics from the economy, the economy from politics, and both fields from Turkey’s struggle for existence. The economy has ceased to be just an economy, it has come under the influence of many variables, and if you are not in control, it has become inevitable to turn into a tool of pressure. Turkey is at a historical threshold. .
Either global moneylenders, money barons, financial brokers will dominate and the transfer of resources from inside to outside will intensify, or it will not go like this, even if it comes like this. The late Prof.Dr.Süheyl Ünver correctly said: ‘The Turks have always been defeated by deception. In the Balkan War, we were not defeated by the enemy, we were defeated by cholera. I heard this from my teacher Süleyman Numan Pasha at the School of Medicine.’ The era of deception is over, now the period of rearing and rising has begun.
Those who attack Turkey through the economy; moreover, it is the common responsibility of everyone whose heart beats with the love of homeland and nation, not to give an opportunity to those who try to imprison our people in the spiral of interest, exchange rate and inflation.
Hz. Ali says: ‘Forgive an enemy who has harmed you. But do not forgive anyone who has harmed your country and nation.’ Neither will we forgive.
“GLOBAL INFLATION IS IN CLIMBING”
Inflation is a macroeconomic measure that shows the cost of living of the society determined by the demand and supply conditions in the goods market. Global inflation is currently on the rise.
This beast basically feeds on two sources: demand-side inflation that occurs when the supply of goods and services cannot respond to the increase in aggregate demand; the other is supply-side inflation brought about by the increase in production costs.
The development of policies to combat inflation and their success are closely related to the correct determination of the source of inflation.
The prevailing view on ensuring price stability highlights monetary policy and defines central banks as the institution responsible for price stability. The strategy followed in price stability policies since the early 1990s is inflation targeting.
“SOLUTION PROPOSAL FOR FIGHTING INFLATION”
In this framework, the solution proposal for the fight against inflation is quite clear: It is to increase and decrease the short-term interest rate as much as the increase or decrease in the inflation rate, thus keeping the real interest rate constant. Inflation targeting, in essence, approaches the fight against inflation from the demand side and predicts that increases in interest rates will reduce aggregate demand, thereby slowing the rate of price increase.
However, since inflation occurs in the goods market, it is best to define high inflation as a problem caused by goods market disruptions. The disruptions observed in the goods market are also the result of a country’s production structure.
The main problem underlying the production structure of many emerging market economies such as Turkey; It is import dependency in machinery, equipment and energy, along with raw materials and inputs used in production. When the foreign trade deficit of the goods and services sectors is added to this, a production structure sensitive to exchange rate changes emerges.
Here is the problem we are facing. In the flexible exchange rate system, the value of the exchange rate is determined by market conditions. Theoretically, high domestic inflation compared to international markets leads to the depreciation of the national currency in the long run; It is naturally expected that high domestic interest rates will lead to an appreciation of the national currency in the short term.
A healthy analysis of the question of how the exchange rate, which is affected by the inflation in the long run and the interest rate channel in the short run, moves is an important need.
The experience of Turkey in the commodity, money and exchange rate markets has shown us that the raising effect of inflation is much more dominant than the depressing effect of interest in determining the exchange rate. For this reason, the high inflation-interest-currency dilemma always appears before us.
I would like to emphasize that Turkey’s production and foreign trade structure requires approaching the fight against inflation not only from the demand side, but also from the supply side.
Applying a high interest rate policy in a situation where demand-side positive shocks are accompanied by negative supply-side shocks at the source of inflation, in the words of the President of the European Central Bank, ‘while tighter monetary policy only intensifies the contractionary effect on the economy’; For us, it is like ‘to fuel the fire’.
“HIGH INTEREST CAUSES DEFERRED INVESTMENT DECISIONS”
As high interest rates increase financing costs, it not only prevents the recovery in the economy on the supply side; It also restricts production capacity by delaying investment decisions. This means unemployment, poverty and cost of living. Turkey is faced with making a decision and putting forth a will to implement it.
“INTEREST POLICY SHOULD GRADUATELY AVOID”
Either we will continue to react to the increase in inflation by raising interest rates, and we will accept the cycle within the inflation-interest-rate-rate spiral; or we will gradually abandon the high interest rate policy, which distorts the activities and expectations of all economic units, and move to a policy understanding that redefines the fight against inflation and is based on the production channel.
In our opinion, there is no other alternative. You are well aware that both policies have risks and costs associated with them.
The cost of the first has already been paid, unfortunately it continues to be paid. The second requires taking structural steps. Gradually abandoning the high interest rate policy, which is the second option, indicates, first of all, that import dependency in production and foreign trade is on the agenda as a structural problem and the fierce struggle against it.
Taking structural steps to reduce raw material-input, machinery-equipment dependency in the first place will be the cornerstone of breaking the inflationary pressure from the exchange rate.
“NO OTHER WAY LEFT FOR OUR ECONOMIC SECURITY”
The fight against inflation will be accomplished with a policy that includes a supply-side approach, and if Turkey is to pay a price, it will take the risk to change and improve its production structure. There is no other way for our economic security.
However, the primary issue that needs to be resolved not only for the fight against inflation, but for the entire economy is the elimination of uncertainty in policy implementation. It is proven by our experience that the policy, which is based on monetary policy and the central bank, the role of public finances is kept in the background, and the policy that links the fight against inflation only with interest is insufficient to produce a solution.
It is an undeniable fact that we, as a country, need a public finance approach that detects and solves the obstacles to effective use of resources, as well as the implementation of a stable and stable monetary policy.
“IMF AND THE GAMES OF THE INTEREST LOBBY”
According to the result reached with the 1980-2020 period data for the Turkish economy, a long-term relationship was found between the interest rate and inflation. It is irresponsible to row against the current, to serve pessimism to our nation with the habits of the Neo-Liberal economic movement, which is incompatible with patriotism.
At this stage, it is a necessity of both democracy and national will to bring the independence of the Central Bank into discussion within the scope of the new management system.
It is clear that we cannot go any further with the tricks of the IMF and the interest lobby. It is unacceptable distortion to have the mallet in the hands of others while the drum is on the neck of the government. Autonomous and independent institutions cannot and should not be above the national will. It is politics that gives the account, and it should be politics that makes the decision.
It is now better understood in whose favor the people who speculated on the Official Gazette last Friday, fueled distrust, and put our people on vigil, were working in the past.
The fact that CHP, IP and others only criticize and create fears around the economy is an indicator of their inability and helplessness. It is not clear what kind of economic policy they will follow. It is not clear what kind of public finance they envision.
The only thing ignorant people who don’t understand economics say is the early election. In fact, they are not prepared, they are one and the same with the mischievous students who do not study for their lessons.
I repeat, there is no early election, the election will be held in June 2023. Those who say elections are necessarily elections, immediate elections, and elections are elections are supporters of the politics of defeat. At a time when we need stability the most, who does the election mean? Whose voice is it to be a voice? What kind of politics is it?
“WE KNOW OUR PEOPLE’S ECONOMIC STRENGTHS”
We are aware of the economic difficulties of our people, we are aware of the complaints about the increasing exchange rates, but the policies followed are correct, everything will get better soon. They want to get the revenge of our fight against terrorism through exchange rate.
They are trying to suppress our upright stance, our heroic defense of our sovereign rights, with foreign currency. They seek to repel our presence in Syria, Iraq, Libya, Blue Homeland, Karabakh, Africa with foreign currency. This time they will not succeed, the arrow that comes out of the bow will reach its target by Allah’s leave, and no one will be able to hold back Turkey.
Foreign exchange operations are in vain, the efforts of those who lobby interest are futile, they will not be able to take over Turkey, they will not be able to turn the Turkish nation from its path.
My request from our citizens; A little patience, a little fortitude, these days will pass, they will surely find comfort with a national and local economic revival.”