Jumping right to more serious matters, I have two important topics worthy of an addendum:
First, the timing of the announcement of the MTP coincided with the release of strong September budget figures, but I think this was no coincidence. If nothing else, I have to accept that this government is expert at playing to the tune of the market and managing expectations. I mean, these guys managed to keep hopes of an IMF Stand-by afloat for several months.
In a similar vein, anyone familiar with the September budget turnout is probably wondering what the hell I had been smoking while writing my column: The MoF-defined primary surplus was almost four times higher on a year-on-year basis. So the combination of the MTP and the September figures were enough to convince markets of the government's fiscal resolve.
Interestingly enough, the government has now around 80 billions liras of primary spending left for the last quarter of the year. Naive guys like me would just spend it all, but I believe the government will not go for the whole nine yards- just to impress markets further.
Secondly, as I mentioned before, fiscal policy is better suited to deal with capital inflows, so it would be a real pity if the government did not keep with its promise of fiscal moderation. That would make the CBT's job very difficult as well, as it would not be able to get support from fiscal policy.
Anyway, on to the column: