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Shaky emerging economies in view of the global financial crisis: The Turkish economy after three decades of liberal reforms

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  • Faruk Ulgen

    (CREG - Centre de recherche en économie de Grenoble - UPMF - Université Pierre Mendès France - Grenoble 2)

Abstract

In the wake of the global change of a new accumulation regime in major capitalist economies, the opening up and liberalisation process of emerging economies from the 1980s has provoked great expectations that resulted in recurrent disappointing crises. Studied as a stylized fact, the Turkish experience leads us to assess the role of liberalised macroeconomic environment, unsuitable economic policies and hesitant and weak regulatory mechanisms as the main sources of perverse sequencing in the reform area. The paper shows that the Turkish crises since the 1980s arose from bad macroeconomic policies, which implemented the neo-liberal shock therapy model and triggered boom-and-bust cycles. After three decades of liberal reforms, the Turkish economy remains still subject to structural downturns. The economic recovery is not guaranteed by a hasty liberalisation. It requires consistent policies which should frame economic agents‟ forms of behaviour in order to induce a sustainable macroeconomic development.

Suggested Citation

  • Faruk Ulgen, 2011. "Shaky emerging economies in view of the global financial crisis: The Turkish economy after three decades of liberal reforms," Working Papers halshs-00669714, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00669714
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00669714
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    References listed on IDEAS

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    More about this item

    Keywords

    Liberalisation; Stability; Sustainable growth regime; Turkish economy;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • G01 - Financial Economics - - General - - - Financial Crises
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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