Turkey's government is gradually turning toward more orthodox economic policies in an attempt to improve the country's financial fundamentals. But possibly as soon as later this year and certainly by 2027, Ankara will once again face political incentives to revert to less stability-oriented, pro-growth measures. Following his reelection in May, Turkish President Recep Tayyip Erdogan appointed a technocratically-oriented economic team with a mandate to shift policies toward greater orthodoxy in an attempt to rein in inflation. The most prominent members of this team are Finance Minister Mehmet Simsek, a former finance and deputy prime minister, and Central Bank governor Hafize Gaye Erkan, a former Goldman Sachs executive. The new economic team has promised a more ''rational'' policy and a ''credible'' program of macroeconomic adjustment and reform after years of unconventional macro- and microeconomic policies. In particular, Simsek and Erkan aim to roll back some of the interventionist, market-distorting policies that...
