The Impacts of the Global Crisis on the Turkish Economy and Policy Response

Date

2014-01-01

Author

Cömert, Hasan

Metadata

Show full item record

Item Usage Stats

213
views

0
downloads

This paper focuses on the impacts of the recent global crisis on the Turkish economy and the policy measures taken in response to the crisis. Turkish economy was adversely affected by the crisis through mainly three channels, namely expectations channel, trade channel and financial channel. The distinctive characteristic of the crisis was a severe export shock which can account for an important part of the decline in production in Turkey. Beside this, a significant sudden stop in financial flows worsened the credit conditions in the economy. As a result, the Turkish economy witnessed one of its worst economic down-turns after the Second World War. In fact, the Turkish growth performance was one of the worsts among developing countries. However, as opposed to previous crises, the financial markets in Turkey and many other developing countries did not experience a collapse. We argue that this is mainly related to the small magnitude and short duration of the financial shocks hitting Turkey and other developing countries relative to the ones in the previous decades. In this sense, the Turkish economy might not have been fully tested during the last global crisis. How the economy will behave in case of a larger financial shock is still unknown.

URI

https://hdl.handle.net/11511/81572
https://ideas.repec.org/p/met/wpaper/1417.html

Journal

ERC Working Papers

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

The sustainability analysis of Turkish domestic debt Alkan, Feyza; Öcal, Nadir; Department of Economics (2009) In this thesis, sustainability of the Turkish domestic debt is analyzed within the “sustainability indicators” perspective. The fiscal targets of Maastricht Treaty (1992) are imposed on the Turkish fiscal policy and it is investigated whether these targets are the indicators for sustainability in the medium term. Uctum and Wickens’ (2000) methodology is followed in assessing the sustainability of the current fiscal policy and the efficiency of the Maastricht Treaty (1992) targets. Moreover, the vector auto ...
Institutional Environment, Economic Performance and Innovation in Turkey Erdil, Erkan; Pamukcu, Mehmet Teoman (2015-01-01) This paper investigates the relationship between economic performance and innovation in Turkey, while also taking into account the crucial mediating effect of the institutional environment. We carry out an in-depth analysis of the recent shifts in STI policy-making in Turkey. The emphasis is on the innovation support policy instruments, and their effectiveness, as well as on the formulation of national STI targets, sector priorities and targets in the field of human resources. A number of concerns are expre...
The approaches of Turkish Social Democrats to the European Union Erdem, Seçil; Kaya, Ahmet Raşit; Department of Political Science and Public Administration (2006) The relations between Turkey and the European Union and the current developments concerning this process are important issues which have direct and indirect effects on the economic, political and social dynamics in Turkey. In this context the European Union has also become an important subject of political debates in Turkey. This thesis analyses the roles and approaches of the political components within the framework of Turkish Social Democratic Movement in the process of the determination of the Turkey-Eu...
The budget of the European Union Güvenç, Müge Hayriye; Akbostancı Özkazanç, Elif; Department of European Studies (2007) This thesis assesses the underlying political and financial reasons of the recent budgetary crisis of the European Union. It aims to discuss the possible reform alternatives for the European Union budget in order to improve it to better serve for the objectives of the enlarged Union and to enable the Member States to share the budget burden more fairly. To this purpose, the thesis first analyzes the budget of the European Union in terms of its aims, evolution and structure of revenue and expenditure items a...
The relationship between stock returns crude oil prices interest rates and output evidence from a developing economy Sarı, Ramazan; Soytaş, Uğur (2006-07-01) In this paper we investigate the impact of oil price shocks on the macroeconomy of a developing country, Turkey. In the literature, a number of studies examine the affects of the innovations in oil prices in developed countries. Their results suggest that the oil price changes are important factors in explaining the variation in GDP, inflation, employment, and real stock returns. Only recently, the same effect has been investigated for developing countries. To the extent of our knowledge, no study has exam...

Citation Formats

H. Cömert, “The Impacts of the Global Crisis on the Turkish Economy and Policy Response,” ERC Working Papers, pp. 0–0, 2014, Accessed: 00, 2021. [Online]. Available: https://hdl.handle.net/11511/81572.