For a few months in late 2000 and early 2001, Turkey hovered on the brink of economic collapse. High inflation, a large public debt, a growing current account deficit, and delays in restructuring the economy triggered a loss of confidence among investors and caused a run on the country's banks. To deal with the crisis, the government undertook a sharp fiscal correction, floated the exchange rate, and initiated wide-ranging structural reforms as part of an ambitious package supported by the IMF. Three years later, Turkey is on its way to becoming a new tiger economy. But it has faltered before. Will it manage to stay the course this time? Michael Deppler and Reza Moghadam-respectively Director and Assistant Director in the IMF's European Department-spoke with Camilla Andersen of the IMF Survey about the country's prospects.

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