Besides price stability, contributing to financial stability within its scope of operations has been also listed among the primary duties of the Bank in the Central Bank Law. To that end, CBRT has used a combination of macroprudential tools and automatic stabilizers. We view both price stability and financial stability as two indispensable components of balanced growth. 1  Borio, C. (2011). Central Banking Post-Crisis: What Compass for Uncharted Waters? BIS Working Papers, No. 353. 2  Akçelik, Y., Başçı, E., Ermişoğlu, E. and Oduncu, A. (2013). The Turkish Approach to Capital Flow Volatility. CBRT Working Papers, No: 13/06. 3  For sustainable debt levels, see: Cecchetti, S., Mohanty, M. S. and Zampolli, F. (2011). The Real Effects of Debt. BIS Working Papers, No. 352. 4  Reinhart, Carmen M., and Kenneth S. Rogoff. (2009). This Time is Different: Eight Centuries of Financial Folly. Princeton, NJ: Princeton Press. ; Taylor, A. (2012). The Great Leveraging, NBER Working Papers, No. 18290. 2  BIS central bankers’ speeches  Distinguished Guests, Comprehending the importance of systemic risk along with macroprudential measures to mitigate this risk to ensure financial stability has necessitated reconsideration of the regulatory framework at global level. The enactment of the Dodd-Frank Act in the US and the establishment of the European Systemic Risk Board (ESRB) in Europe as well as new regulations introduced in other countries aim to mitigate systemic risk via coordinated action across agents responsible for financial stability. To this end, Turkey established the Financial Stability Committee in the summer of year 2011.

Erdem Başçi: Turkish-Austrian economic relations in a European and international context Keynote speech by Mr Erdem Başçi, Governor of the Central Bank of the Republic of Turkey, at the meeting of “Turkish-Austrian economic relations in a European and international context”, hosted by the Central Bank of the Republic of Austria, Vienna, 18 March 2013. *  *  *  Distinguished Participants, I would like to start by thanking Ewald Nowotny, the Governor of Oesterreichische NationalBank for hosting the meeting on the “Turkish-Austrian Economic Relations in a European and International Context”. My colleagues from the Central Bank of the Republic of Turkey and myself are pleased and honored to take part in this important event. After this meeting, opening ceremony of the Exhibition titled “Contemporary Turkish Painting and Printmaking in the Republican Era”, which is composed of some examples from our Bank’s collection, will take place. It is my pleasure to invite you all to the opening ceremony which will take place this evening at 7:00pm. In my speech, first I will share a few observations about the increasing importance of emerging market economies (EMEs) in the global system. Then, I will talk about financial stability in EMEs in general and Turkey in particular. Finally, I will conclude with the developments regarding the economic relations between Austria and Turkey. Distinguished Guests, The share and significance of EMEs in the global economy has been on the rise. The share of EME exports in world total exports increased from 13% in 2000 to 23% in 2010.