Central Bank of Turkey's ex-deputy governor, Ercan Kumcu, passes away at 70 years of age.
In a sombre turn of events, Ercan Kumcu, the esteemed Turkish economist and former Deputy Governor of the Central Bank of the Republic of Turkey (CBRT), passed away on Saturday at the age of 70.
Kumcu served as Deputy Governor of the CBRT from 1988 to 1993, working under then-Governor Rusdu Saracoglu. His tenure at the central bank coincided with the 1990-1991 Gulf War, a period marked by regional instability that significantly impacted Turkey’s economy and monetary conditions.
During this challenging time, Kumcu and Governor Saracoglu advocated a hawkish monetary policy stance, aiming to maintain tight monetary conditions to counteract risks. However, they faced political disagreement with then-Prime Minister Tansu Çiller, leading both to resign in 1993.
Their departure preceded the severe 1994 Turkish currency crisis, characterized by sharp lira depreciation, soaring inflation (over 100%), and extremely high interest rates (exceeding 400%). This economic downturn was one of the harshest experienced in Turkey during the 1990s.
Ercan Kumcu's significance lies partly in his role managing Turkey’s monetary policy during a period of regional conflict and financial instability tied to the Gulf War, and partly in his principled stance favouring monetary discipline, which contrasted with political pressures at the time.
Beyond his central bank role, Kumcu was an academic who earned a PhD in economics from Boston College in 1983 and taught in the U.S. before returning to Turkey. His academic subjects included macroeconomics, monetary theory, international economics, and finance. He taught at Boston College, Eastern Michigan University, and the State University of New York at Binghamton.
The Central Bank of the Republic of Turkey expressed its sadness at Kumcu's passing and offered condolences to his family and loved ones. Economist Mahfi Egilmez noted that Kumcu and then-Governor Rusdu Saracoglu resigned from the central bank in 1993 after a dispute with then-Prime Minister Tansu Ciller, as they advocated a hawkish monetary stance amid rising risks but were overruled.
Kumcu was born in Istanbul in 1955 and graduated from Bogazici University's economics department in 1977. He began his academic career in the United States.
In memory of Ercan Kumcu, we remember a dedicated public servant and a brilliant academic who navigated Turkey through turbulent times with courage and conviction.
- Ercan Kumcu, an economist of Turkish origin, passed away in Istanbul at the age of 70, leaving a significant mark on Turkey's economy.
- Throughout his career, Kumcu held academic positions at Boston College, Eastern Michigan University, and the State University of New York at Binghamton, teaching subjects such as macroeconomics, monetary theory, international economics, and finance.
- As Deputy Governor of the Central Bank of the Republic of Turkey (CBRT) from 1988 to 1993, Kumcu, along with then-Governor Rusdu Saracoglu, advocated for a hawkish monetary policy stance, especially during the 1990-1991 Gulf War, to maintain tight monetary conditions amid regional instability.
- The severe 1994 Turkish currency crisis, characterized by lira depreciation, soaring inflation, and sky-high interest rates, followed Kumcu and Saracoglu's departure from the CBRT after a disagreement with then-Prime Minister Tansu Çiller.
