Macroeconomics of Twin-Targeting in Turkey: Analytics of a Financial CGE Model ∗ Cagatay Telli State Planning Organization, Ankara ctelli@dpt.gov.tr Ebru Voyvoda Middle East Technical University, Ankara voyvoda@metu.edu.tr and Erinc Yeldan Bilkent University, Ankara yeldane@bilkent.edu.tr May 2007 ∗ Author names are in alphabetical order and do not necessarily reflect authorship seigniority. We are indebted to Korkut Boratav, Yilmaz Akyüz, Jerry Epstein, Bill Gibson and to the members of the Independent Social Scientists’ Alliance for their valuable comments and suggestions on previous versions of the paper. Previous versions of the paper were presented at the Istanbul Conference of the EcoMod in June 2005; the 9 th Congress of the Turkish Social Sciences Association (December 2005, Ankara); the Ankara congress of the Turkish Economics Association, September 2006; and seminars at Bilkent, METU, Bogazici, Utah, Massachusetts-Amherst, and the Central Bank of Turkey. Research for this paper was completed when Yeldan was a visiting Fulbright scholar at the University of Massachusetts-Amherst for which he acknowledges the generous support of the J. William Fulbright Foreign Scholarship Board and the hospitality of the Political Economy Research Institute at UMass, Amherst. Needless to mention, the views expressed in the paper are solely those of the authors’ and do not implicate in any way the institutions mentioned above.