Simsek's Appointment Brings Hope for Turkey's Economy

Mehmet Simsek, a former Turkish finance chief known for his advocacy of conventional economic policies, has been appointed as Turkey's new treasury and finance minister. Simsek's appointment signals a return to more orthodox economic policies, which analysts largely blame on President Erdogan's unorthodox economic strategy of low interest rates and credit expansion. Simsek's main targets include establishing fiscal discipline and ensuring price stability for sustainable high growth, reducing inflation to single digits again in the medium term, and speeding up the structural transformation which will reduce the current account deficit. His appointment is important for Turkey to attract foreign investment, but investors will want to see the autonomy and authority of the new finance chief.