erdem basci : recent economic and financial developments in turkey speech by mr erdem basci, governor of the central bank of the republic of turkey, at the press conference for the presentation of the october 2014 inflation report, ankara, 31 october 2014. * * * original presentation is on the central bank of the republic of turkey ’ s website : http : / / www. tcmb. gov. tr / wps / wcm / connect / 47fed704 - 6c8d - 48a4 - 9fce - 458bc4bad30b / er _ ekim _ 2014 _ konu % c5 % 9fma _ % c4 % b0ngilice. pdf? mod = ajperes & cacheid = 47fed704 - 6c8d - 48a4 - 9fce - 458bc4bad30b distinguished guests, welcome to the briefing held to convey the main messages of the inflation report. i will now present an overview of the report, which will be published on our website soon. the report typically summarizes the economic outlook underlying monetary policy decisions, shares our evaluations on macroeconomic developments and presents our medium - term inflation forecasts, which were revised in view of the developments in the last quarter, along with our monetary policy stance. in addition to the main text, the report includes six boxes entailing interesting and up - to - date analyses on various topics. for example, the report presents boxes that analyze how the determinants of bond flows into emerging economies change over time and the sensitivity of inflation to output gap and loans. moreover, there are studies elaborating on current account fluctuations and current account deficit corrections, non - core liabilities, the correlation between capital flows and loan growth across a wide range of economies and the role of macroprudential measures in the elasticity of loans to capital flows. titles of the boxes are shown on the slide. all of these analyses shed light on noteworthy issues in the turkish economy. i strongly recommend that you read these boxes, which will soon be published on our website. distinguished guests, i would like to commence my speech by reviewing the global economic outlook given its undeniable influence on our policies. in the third quarter of the year, the uncertainty over advanced country monetary policies led to a partial volatility increase in global financial markets. while the us federal reserve ( fed ) ended its quantitative easing program,

by the g - 20 to enhance the exchange of information and cooperation regarding financial access. having said these, i believe that the cbt study entitled “ access to financial services and financial education in turkey and around the world ” will become an important reference regarding this issue. the booklet is now accessible on the cbt website as well as in the conference cd and is will be in print soon. in the last part of my speech, i would like to mention some specific points regarding financial education within the framework of this conference. in the first session, we will discuss the relationship between financial education and financial stability and contribution of financial education to the functioning of the financial system. then we will move on to the impact of the recent global financial crisis on the rising issue of financial education and financial awareness. taking into account the importance of benefiting from other countries ’ experiences while formulating national financial education strategies and programs, in the second session we will focus on financial education practices around the world. i believe that this session will yield very useful inferences. in the third session, we will listen to experiences of those countries that have made significant progress in designing their national financial education strategies and we will learn their methods, challenges and suggestions for solutions as well as the outcomes they obtained. on the second day of the conference, we will elaborate the current efforts on financial education in turkey and the roles and responsibilities of all relevant stakeholders. at this point, the cooperation between institutions will play an instrumental role in designing national strategies. the implementation of education programs is as important as designing financial education strategies and this issue will be thoroughly discussed in the sixth and last session of the conference. as the central bank of turkey, we strongly believe that the significance of financial education is far beyond its conceptual meaning and we attach great importance to collaborating with national and international institutions in this area. we believe that this conference with the valuable contribution of the capital markets board will be a milestone. i wish the conference every success and thank everyone who has made a contribution. bis central bankers ’ speeches