Analyzing wealth inequality in Türkiye: The effects of monetary policies and financial inclusion

Abstract

This paper examines how recent monetary policies in Turkey have affected wealth inequality through the channel of financial access. Wealth inequality has widened in Turkey in the context of high inflation, negative real interest rates, and unconventional policy tools such as the Currency-Protected Deposit Scheme (KKM). While asset holders and financially included groups have been able to hedge against inflation and currency depreciation, financially excluded individuals have faced rising living costs and eroding real wealth. The study is based on an online survey of 270 adult residents in Turkey, designed to capture demographic characteristics, levels of financial literacy, use of financial instruments, and perceptions of economic and monetary policies. Respondents were classified into three main groups: users of conventional financial instruments, users of alternative (often interest-free) instruments, and non-users. Descriptive analysis is used to compare wealth outcomes and perceived advantages across these groups...