Figure 1 GDP and real disposable income Index, 2007 =100 115  115 Real disposable income GDP  110  110  105  105  100  100  95  95  90  90 07  08  09  10  11  12  Source: Statistics Sweden  Figure 2 Housing prices Index, January 2005 = 100, seasonally-adjusted data 200  200 HOX Sweden (Single-family houses) HOX Sweden (Tenant-owned apartment) HOX Sweden  180  180  160  160  140  140  120  120  100  100 05  06  07  08  09  10  11  12  13  Sources: Valueguard and the Riksbank  2  BIS central bankers’ speeches  Figure 3 Lending to households and companies Index, 2007 =100 160  160 Companies Households  140  140  120  120  100  100  80  80 07  08  09  10  11  12  13  Source: Statistics Sweden  Figure 4 Exports, investment and consumption Index 2007 = 100, seasonally adjusted data 110  110 Private consumption Gross fixed capital formation Export  100  100  90  90  80  80 07  08  09  10  11  12  13  Source: Statistics Sweden  The division in the economy is a problem for monetary policy.
Increased risk aversion has led to sizeable capital outflows from emerging markets in the last two months, resulting in an overall depreciation of domestic currencies. As you may already know, following the 2001 financial crisis, Turkey adopted an ambitious reform agenda to strengthen the financial sector and banking system. Thanks to these measures, resilience of the Turkish economy to external shocks has been improved significantly and the banking system in Turkey has been relatively prepared for the current crisis, as witnessed during current financial turmoil. Since securitized products are rarely used in the Turkish banking sector, the ongoing financial turmoil has not put a marked pressure on local banks through that channel. In addition, there are no liquidity problems in the system. Deposits have been stable and banks have adequate level of collateral in the form of government securities that can be used in the open market operations. However, considering the severity of the current crisis and Turkey’s integration into the global economy, it won’t be surprising that the crisis has some effects on Turkish banking sector. The general framework of the Central Bank’s liquidity management is fairly flexible and wellstructured to fulfill its lender-of-last resort role and meet both New Turkish Lira and foreign exchange liquidity requirement of the banking system effectively. We have acted promptly to contain the adverse effects of the global financial turmoil on the domestic economy.