The effects of interest rate volatilities on the demand of Turkish Essay

The effects of interest rate volatilities on the demand of Turkish money - Essay Example This study aims to look at, particularly the possessions of interest rate volatilities in case of Turkey along with customary factors influencing the demand for money. Because the raise in interest rate volatility is probable to lead structural variations in the formation of behavioral dealings which defines economic sector. It will also really influence the demand for cash. Other than, it must be strained here that the nominal interest rate contains two parts: Expected rate of inflation and an expected real rate of return. Interest rate volatility is a very important factor in determining a healthy monetary policy for the economy. It is important to identify the factors that create the demand for money. The period of 1990s saw the banking sector in Turkey highly dominated by public banks, which were inefficient in its activities. The Turkish bank sector had a large number of serious discrepancies and deficiencies such as large risks in foreign currency, interest rates and liquidity in the banking sector. During the decided investigation period of 1990-2000s, the increase in GDP was only 2.5 per cent in Turkey. The banking sector in Turkey was deficient of good governance and the economic environment in which the banks existed brought severe economic losses to the bank. â€Å"The credits-to-total assets ratio declined from 47 percent to 32.8 percent between 1990 and 2000†. There was also a decrease of around 50 – 80% in the credits to deposit ratio in the Turkish banks. The Turkish banking sector was regulated and supervised by the coordination and cooperation of two authorities, the treasury and the central bank of Turkey. â€Å"Turkish Bank Ltd is authorized and regulated by the Financial Services Authority† (Turkish Bank n.d.). During this financial period, the Turkish banks financed public deficits due to very high real interest rates, which were charged by the banks. The high volatility in the interest rates also had its consequence on the demand of money in the Turkish economy. It is important to identify the determinant, which increases the demand for money in the economy in order to create and conduct a healthy monetary policy which suits the Turkish economy. The increase in interest rate volatility is accompanied by an effect in demand for money. Investigating the determinant of the demand for money is significant to make and conduct a healthy financial policy, which is directly connected to whole economy. For instance, a factor that raises the demand for cash may unfavorably affect financial performance by rising velocity of money and nominal income circulation. This study aims to look at, particularly the possessions of interest rate volatilities in case of Turkey along with customary factors influencing the demand for mo

1 page synopsis that you think embodies the notion of skepticism Essay

1 page synopsis that you think embodies the notion of skepticism - Essay Example He believes that huge advancements made in scientific research would enable us to meet the aliens on equal footing. The author actually means that as history of civilization has shown, development of society vis-Ã  -vis education, science and technology and democratic pattern of society has made us more tolerant and inclusive society that thrives on understanding and mutual respect. So the more advanced aliens would also behave in similar way and would prefer to understand and corroborate rather than destroy us. It is for this reason that he is skeptic of Stephen Hawking’s prophecy that aliens would be like nomads who would be colonizing planets when they reach there. The article is interesting because it discusses aliens’ invasion or their encounter with us in future. He has doubts about Stephen Hawking’s belief about the nature of encounter with aliens because of his idea that advancements have made us more civilized! Indeed, it has resulted in development but today, we have more wars and acts of violence which have become lethal due to technology. So aliens could be violent species and we should be prepared for that. (words: