Ercan Kumcu: Is It Program or Expectations?

"In the transition process from instability to stability, there are various economic programs that are carried out in various countries.

"All these programs begin from different initial points but try to reach to the same outcome. There has been a countless number of stabilization programs in Turkey.

"The aim of these programs is to reduce inflation to the single-digit level and achieve sustainable economic development with stable prices. While attaining that aim, gaining the trust of the economic agents to the applied program is the most important component to be materialized.

"When  governmets do what programs necessitate without making concessions and ensure the trust of economic agents to the applied program, those stabilization programs become successful. The reasons of failure are neglection of the program by governments or dissuasion of the economic agents from the applied program."

First Trust

"During our inflation experince of last 30 years, many stabilization programs have been applied in Turkey. I think that to reach to a conclusion that some of those programs were right, and some were wrong,  is not very proper. Technically, all programs would have been successful but they did not have the component that success necessitates. That is to say, neither the programs were applied with resolution nor the trust of the economic agents were ensured."

Structural Reforms

The realization of structual reforms with resolution and application of them without concessions are very important in economics to ensure trust. Structural reforms are, in the most rough sense, elimination of mechanisms that would create inflation in the future. Consequently, as much as the sources of inflation are cleansed rapidly and decisively, the trust of the economic agents will strengthen"