High inflation lasts for years
Successive tax increases show that inflation will continue to rise in the coming period. Stating that no measures have been taken to reduce inflation, the Prof. Inflation Research Group (ENAG), founder of Prof. Prof. Dr. Veysel Ulusoy, stated that no measures were taken on a micro or macro scale.
Ulusoy said: “Just as there is no plan and program, there is no human capital or political will to plan it. A public budget fed by increases and increases in taxes, if any. We are in a period where we will experience living with high inflation where there is stagnation for years. It will take years to recover with the weakening of exports and the deterioration of the public balance due to the drop in demand in the EU, where foreign investors do not arrive ”.
POVERTY BEGINS
Emphasizing that misreporting of price data has a huge impact on the economy, Ulusoy said: “First of all, poverty starts when wages will be subject to lower increases. Second, the price indices used to calculate the true value of all the indicators show much higher relevant values than they actually are. The national income account is a clear example of this. Nominal national income, which is determined by retail prices and the amount of spending, is ultimately deflated by the general price index and is obtained on a real basis. In other words, the real purchasing power divided by the price series, which is the main basis of inflation, appears as a very high figure in the end.
THE NATIONAL INCOME IS INCORRECT
Referring to the effects of these calculations, Ulusoy said: “Remember, we were the only growing economy in the world during the pandemic period. That’s because it’s the result of actual spending being set at the wrong prices. There is no need to discuss the lingering effects in an economy where national income is miscalculated,” he said.
teacher. Dr Veysel Ulusoy
no more waiting
– Recalling that they constantly go to the Gulf countries in search of resources, Veysel Ulusoy said: “We can no longer afford to wait for structural reforms. We have exhausted all alternative solutions. There is a deadlock. It is a situation where we falter and put aside the pride of our country,” he said.
Cases like Argentina begin
Explaining that many foreign companies are currently adjusting salary and additional indicators of the workforce in Turkey according to ENAG inflation, Prof. Dr. Veysel Ulusoy said: “Especially, ENAG is used as an indicator in cases that are subject to partial payments from the private sector determined by the public procurement law. I think it is possible to find a chain of trials similar to Argentina in the next periods. Remember, the people of Argentina, who experienced the same situation there in the 2010s, were impoverished and businesses and financial institutions were hurt by incorrectly announced inflation data.