Veteran Turkish financial official Ercan Kumcu, once a deputy governor at the country's central bank, passes away at 70 years old.
Ercan Kumcu, a prominent figure in Turkish economics, served as Deputy Governor of the Central Bank of the Republic of Turkey (CBRT) from 1988 to 1993. During his tenure, he worked under then-Governor Rusdu Saracoglu and navigated a period of significant regional and financial instability, including the economic effects of the 1990–1991 Gulf War.
Born in Istanbul in 1955, Kumcu's academic focus was on macroeconomics, monetary theory, international economics, and finance. He began his academic career in the United States, teaching at Boston College, Eastern Michigan University, and the State University of New York at Binghamton. After earning his PhD in economics from Boston College in 1983, he returned to Turkey to join the CBRT.
Kumcu and Saracoglu advocated for a hawkish monetary policy stance during their tenure, aiming to control inflation and maintain currency stability. However, they were overruled by then-Prime Minister Tansu Ciller, leading to their resignation in 1993. This departure occurred shortly before the 1994 currency crisis in Turkey, which was marked by a sharp depreciation of the Turkish lira, soaring inflation above 100%, and extremely high overnight interest rates exceeding 400%.
The CBRT expressed sadness at Kumcu's passing and offered condolences to his family and loved ones. Economist Mahfi Egilmez noted that Kumcu and Saracoglu resigned from the central bank in 1993 after a dispute with Ciller, as they advocated a hawkish monetary stance amid rising risks but were overruled.
Kumcu's tenure as deputy governor of the CBRT ended in 1993. During this time, the Turkish lira depreciated sharply, with the U.S. dollar exchange rate rising by more than 160% in a matter of months. Economic activity contracted sharply during the 1994 Turkish currency crisis, which was one of the most severe economic crises in Turkey's history.
Despite the challenges faced during his tenure, Kumcu made significant contributions to Turkish central banking and economics. His expertise in macroeconomics, monetary theory, international economics, and finance undoubtedly played a crucial role in shaping Turkey's economic policies during a turbulent period. Ercan Kumcu's legacy continues to be felt in the field of Turkish economics, and his work will be remembered by those who knew him and those who were inspired by his dedication to his profession.
- Ercan Kumcu, born in Istanbul in 1955, had a focus on academics in macroeconomics, monetary theory, international economics, and finance.
- During his tenure as Deputy Governor of the Central Bank of Turkey (CBRT) from 1988 to 1993, Kumcu, alongside then-Governor Rusdu Saracoglu, advocated for a hawkish monetary policy aimed at controlling inflation and maintaining currency stability.
- In Istanbul's business and education-and-self-development circles, Kumcu's contributions to Turkish central banking and economics are still revered for shaping the nation's economic policies during a turbulent period.
- As Syria's regional and financial instability increased due to the effects of the 1990–1991 Gulf War, Kumcu, serving under then-Governor Saracoglu, navigated significant challenges in the realm of Turkish finance and industry.
- In the aftermath of his resignation from the CBRT in 1993, Kumcu's departure was followed by the 1994 currency crisis in Turkiye, characterized by a rapid depreciation of the Turkish lira, high inflation rates, and soaring interest rates.
