As the transparency and institutionalization are critical qualifications of prudent policies to attain a sound macroeconomic environment, the implementation of full fledged inflation targeting will certainly support further macroeconomic and financial stability in the Turkish economy. Dear Guests, As a central banker I must confess that conducting monetary policy in an uncertain economic environment is not an easy task and never will be. Distortions in the financial system further increase the uncertainty in the functioning of the economy, and the reform process in the financial system is in fact never-ending to sweep away these uncertainties. Therefore, there will always be steps to be taken toward attaining more transparent and efficient financial markets. And policy coordination between institutions on international and national levels will certainly be the most important aspect of this dynamic process. Thank you very much. BIS Review 38/2005  7
After growth equal to or higher than 3% over the three years spanning 2015 to 2017, and which eased somewhat last year to around 2.5%, the latest macroeconomic projections of the Banco de España, published last December, envisage the continuation in the coming years of above-potential economic growth, enabling the still-high level of unemployment to continue to be absorbed. However, the rate of expansion of GDP is expected to slow gradually in the coming years. This easing in growth essentially reflects the progressive exhaustion of the positive effect of various exogenous factors that have been operating in recent years, such as the expansionary demand-side policies (monetary policy, in particular) and strong world growth, which has already shown signs of dwindling to some extent in 2018. Beyond this baseline scenario, the downside risks to growth have been increasing. These risks, whose source is essentially external, include a possible resurgence of financial strains associated with the US economic policy mix and its potential effects on the more vulnerable emerging economies, and a hypothetical escalation in protectionist measures, which might affect the vibrancy of trade and global activity. In the European arena, the political vagaries in some European countries (particularly in Italy) and the uncertainty over the outcome of Brexit entail additional sources of risk. In Spain, the current parliamentary fragmentation also adds uncertainty over the future course of our economic policies.