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With the global rise in populism over the last decade, there has been an increase in political commentaries (PC) by leaders that criticize their central banks and argue for lower interest rates. We analyse the effects of PCs on exchange rates, bond yields, and the risk premium for six countries that are subject to political pressures. Utilizing a specification with time‐varying parameters, we show that PCs affect the level and the volatility of exchange rates, bond yields and the risk premium in Turkey. The response increases over time. In other countries, there is a significant impact on exchange rate volatility. [ABSTRACT FROM AUTHOR]

This study examines patterns of voter defection from Turkey's incumbent AKP amid major economic and democratic decline. As in other electoral autocracies, defectors constitute a small but politically significant group in Turkey, where the opposition's ability to secure a transition from authoritarianism depends on reducing the incumbent's vote share. Based on survey data gathered in November 2021 and February 2022, we find that while the high level of partizanship among AKP voters hinders defection, persistent economic and democratic decline still reduces incumbent support. We also found that defections are higher outside of the lowest income group. Our findings have important implications for opposition strategies in electoral autocracies. Directing public debate away from identity issues to economic and democratic problems increases the likelihood of defection. In addition, offering voters clear superior alternatives decreases the cost of uncertainty that comes with change and increases the likelihood of defection. [ABSTRACT FROM AUTHOR]

In this article, we investigate economic and political developments in Turkey’s construction sector over the last decade and consider their implications. We find that during the first term of the government of the Justice and Development Party (Adalet ve Kalkınma Partisi, AKP), thanks to administrative and economic incentives, both private and public construction rose considerably. Despite the construction sector’s contribution to growth, there is also evidence of a transfer from the industrial sector toward the construction sector, which led to significant decline in the trend growth of the industrial sector in the era prior to 2006. Such evidence disappears in the post-crisis period, when the growth of private construction slows. However, overcentralization, clientelism, an absence of transparency, and limitations on citizen participation in urban planning remain as problems that need to be addressed through urban reform. [ABSTRACT FROM PUBLISHER]

Abstract: This paper assesses the effectiveness of monetary policy communication of the Central Bank of Turkey (CBT) by quantifying the information content of its policy statements released right after the monthly Monetary Policy Committee meetings. First, we quantify the signal regarding the next interest rate decision and ask whether communication improves predictability. Our findings suggest that the role of statements in predicting the next policy move has strengthened following the adoption of a full-fledged inflation targeting (IT) regime. Second, we identify the surprise component of policy communication directly from market commentaries and assess its impact on the term structure of interest rates. We find that the response of the yield curve to policy statements has become highly significant for the unanticipated changes in the monetary policy communication, especially after the implementation of the IT. We also compare the yield curve impact of the surprise component of policy decisions (actions) with the surprises in policy communication (words). Our results suggest that the relative importance of communication in driving market yields has increased through time. [Copyright &y& Elsevier]