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Assessment of public deficit, money creation and inflation problems in Turkey: 2010-2020

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  • Zeynep Erdogan

    (Istanbul University / Turkiye)

Abstract

Turkey has faced economic problems such as public deficit, money creation, and inflation between 2010 and 2020. Public deficit is a situation where government expenditures exceed its revenues. In Turkey, the fiscal deficit has consistently remained high during these years, increasing the government’s borrowing needs. Money creation is a situation that arises when the central bank increases its money supply. The resulting abundance of money from the central bank has led to rising prices and decreased purchasing power for citizens. Money supply has continuously increased in Turkey over the past decade, which has also triggered inflation. These findings have been reached through a literature review. In conclusion, economic issues such as public debt, money creation, and inflation are closely related to each other and are factors that negatively affect economic growth. Turkey needs to develop policies and undertake economic reforms to address these problems.

Suggested Citation

  • Zeynep Erdogan, 2023. "Assessment of public deficit, money creation and inflation problems in Turkey: 2010-2020," Holistic Economics, Holistence Publications, vol. 2(2), pages 73-84.
    • Handle: RePEc:jle:jouauz:hoec2177
    DOI: 10.55094/hoec.2177
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