Macroeconomic Decision Support for Optimal Policy Making: The Case of Turkey

Abstract

Planning in macroeconomic policy making (still) plays an essential role in the development process of developing countries. The experience of planning however, witnesses failure in the use of appropriate quantitative tools. In the study, a macroeconomic decision support framework for policy optimization is suggested and its application via optimal macroeconomic policies for the Turkish economy over the sixth five year development plan period (1990-1994) is illustrated. The results show that policy optimization is a very powerful tool for forming macroeconomic policies, at least in Turkey.