##sts and pessimists in the cbrt ’ s business tendency survey began to decrease and in november, the pessimist expectations started to gain ground. it is observed in this survey that also the expectations for inflation, employment and exports began to deteriorate in the same period. the propensity for investments started to decline during the summer of 2000 and continued to do so at an accelerating rate later on. keeping public expenditures under control and rising tax revenue due to supplementary tax adjustments led the primary surplus to pick up significantly. however, the growth in domestic demand, the price hikes in energy sector, especially in crude oil, and the real appreciation of turkish lira were all the factors that caused the imports to grow rapidly and this, in turn, led to deterioration in current account balance. in addition, the depreciation of the euro against the us dollar by an average 13 percent in 2000 raised turkey ’ s imports from the eu countries, while turkey ’ s exports to the eu countries were negatively affected. as a result, the external current account deficit in 2000 grew by 4. 8 percent of the gnp. while the current account deteriorated rapidly, delays in privatization and structural reform agenda in the second half of 2000 adversely affected the capital movements and interest rates starting from august, arousing concerns in domestic and international markets. the increase in the interest rates, on which the monetary policy similar to a currency board regime is ineffective, resulted in deterioration of the financial structure of the banks which held large amount of government securities in their portfolios. this further weakened the confidence in financial markets in the second half of november. although the targets for net domestic assets and net international reserves had been met until midnovember 2000, the central bank had to inject substantial liquidity to the markets due to the shortage arising from the turmoil in the banking system in november 2000. the liquidity, which was injected by means of open market operations, amounted to tl. 3. 9 quadrillion between 22 and 30 november 2000. the target for net domestic assets was overshot due to excess liquidity. in addition, the central bank sold us dollar 6 billion to the banking sector in view of the rising demand for foreign exchange. these developments prompted us to revise the targets for net domestic assets and net international reserves. in december, the supplemental reserve facility extended by imf and the additional measures taken by the government provided a partial relief to the financial markets. the revised postcr

john c williams : the right tools for our time remarks by mr john c williams, president and chief executive officer of the federal reserve bank of new york, at the international economic symposium co - hosted by the deutsche bundesbank and nabe, eltville, 10 may 2022. * * * as prepared for delivery good afternoon. i'm so pleased to be here with you today. we've waited a long time to gather in person. and i think we can all agree that meeting in this charming location was worth the wait. for most visitors, eltville is renowned for its wine and roses. but for economists, it's a place to convene for weighty discussions on monetary policy. given the events happening around the world today, there is much to discuss. we are meeting at a time of significant economic challenges and uncertainties. inflation has reached levels not seen in decades, both in the united states and in many other countries. and recent events - including the war in ukraine, lockdowns in china, and other supply disruptions related to the ongoing covid - 19 pandemic - are exacerbating near - term inflationary pressures and uncertainty about the global economic outlook. the challenge for monetary policy today is clear : to bring inflation down while maintaining a strong economy. this, of course, is at the heart of the federal reserve's dual mandate of price stability and maximum employment. although the task is difficult, it is not insurmountable. we have the tools to return balance to the economy and restore price stability, and we are committed to using them. before i go any further, i will give the standard fed disclaimer that the views i express here are my own and do not necessarily reflect those of the federal open market committee ( fomc ) or anyone else in the federal reserve system. overheating whenever i talk about monetary policy, i start with the federal reserve's dual mandate : price stability and maximum employment. with the unemployment rate back to very low pre - pandemic levels, and a variety of indicators showing the labor market is very strong, maximum employment has been achieved. but, with inflation rising to unacceptably high levels, we are far from our longer - run goal of 2 percent inflation. high inflation harms those who are most in need. too many families are now struggling to meet the increasing cost of necessities. i am resolutely focused on