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Global Financial Crisis and Turkey: Effects and Suggestions


  • Meltem Ince


A global financial crisis hit the world in late 2008. It has become clear that this financial crisis will have a deep impact on countries’ trade volumes and investment plans. When the crisis has started on the financial markets, it affected developed countries as much as developing ones. Since the beginning of September 2008, it has been deepening in USA, while spreading out to the world. Turkey is one of the countries affected from this global economic crisis. Turkey had became dependant on capital accumulation movements after 1990s. Growth with capital accumulation movements constituted a relationship between capital movements and balance of payment. Growth related to short run capital movements provided money from money instead of production. So it affects investments negatively and this makes a negative effect on growth in long run period. The clearest effect of global crisis on Turkey is unemployment and inflation. Although it is very difficult for Turkey to put these two in order, in the last years they have been decreasing through policies, but with this global crisis they have increased again.

Suggested Citation

  • Meltem Ince, 2010. "Global Financial Crisis and Turkey: Effects and Suggestions," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 101-117.
  • Handle: RePEc:bas:econst:y:2010:i:1:p:101-117

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    References listed on IDEAS

    1. Obstfeld, Maurice, 1996. "Intertemporal price speculation and the optimal current-account deficit: reply and clarification," Journal of International Money and Finance, Elsevier, vol. 15(1), pages 141-147, February.
    2. Ercan UYGUR, 1994. "Türkiye''de Ekonomik Kriz, Oluşumu, Seyri," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 9(100), pages 42-54.
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    More about this item

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative


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