The rise of populist nationalism throughout the West has been fueled partly by a clash between the objectives of equity in rich countries and higher living standards in poor countries. Yet advanced-economy policies that emphasize domestic equity need not be harmful to the global poor, even in international trade.
If authoritarian populism is rooted in economics, then the appropriate remedy is a populism of another kind – targeting economic injustice and inclusion, but pluralist in its politics and not necessarily damaging to democracy. If it is rooted in culture and values, however, there are fewer options
2019 yılının önemli ekonomik gelişmeleri, kritik siyasi gelişmeleri ve Türkiye ekonomisi; yerel seçimler, Brexit, Çin ve ABD
How Do Indirect Taxes on Tobacco Products Affect Inflation?
This study examines the effects of price adjustments in the tobacco sector on inflation in Turkey. The findings show that the taxes on tobacco products increase inflation in the short-term. However, the effect is rather limited, a 16 basis points increase in inflation if the current 65.25% Special Consumption Tax (SCT) increases by 25 basis points. Factors that cause inflation in the long-run are cost and demand. The cost-driven impact of tobacco prices on inflation is rather limited due to the low weight of this product in the consumption basket. Nevertheless, the structure of the tax multiplier used in tobacco taxation increases cigarette prices in a non-linear fashion and, therefore, has the potential to disrupt inflationary expectations.
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Drafted by Cem Çakmaklı, Selva Demiralp, Sevcan Yeşiltaş and Muhammed Yıldırım with the cooperation of ZAY Strateji and Philip Morris Sabancı.