18 February 2010 / TODAY’S ZAMAN, İSTANBUL
The Central Bank of Turkey is accountable to the government and the people in the decisions it makes, Durmuş Yılmaz, governor of the bank, has said.
Yılmaz, speaking at the Monetary and Exchange Rate Policies for 2010 meeting organized by the Adana Chamber of Industry (ASO) on Wednesday, evaluated the country’s economic indicators and drew attention to the function of the bank. In regards to the ongoing debate concerning the central bank’s independence, he stated that the bank is independent in order to address fiscal indiscipline and the inflation problem, which it is authorized to deal with. The managers of the central bank can also make mistakes, Yılmaz said, stressing that they are “accountable to the government and the people.” The philosophy behind the bank’s independence is to ensure the continuity of pursued policies, he explained, since it takes some time to see the results of an implemented rule. On the contrary, political choices change frequently, which will not be to the advantage of the people in the medium and long term, Yılmaz remarked. The bank became independent in 2001 by law just after the eruption of the financial crisis in a bid to deal with fiscal indiscipline and inflation, the central bank governor said, adding, “Those who discuss the bank’s independence should compare Turkey’s economic situation before and after 2001.”
