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Between war and peace: The Ottoman economy and foreign exchange trading at the Istanbul bourse

Author

Listed:
  • Avni Önder Hanedar

    () (Sakarya University, Faculty of Political Sciences, Sakarya-Turkey and Dokuz Eylül University, Faculty of Business, Izmir-Turkey)

  • Hatice Gaye Gencer

    (Yeditepe University, Faculty of Economics and Administrative Sciences, Istanbul-Turkey)

  • Sercan Demiralay

    (Istanbul Gelisim University, Faculty of Economics, Business Administration and Social Sciences, Istanbul-Turkey)

  • Ismail Altay

    (Recep Tayyip Erdogan University, Faculty of Economics and Administrative Sciences, Rize-Turkey)

Abstract

Between 1914 and 1918, the Ottoman Empire was involved in the First World War, which caused economic disruptions, huge budget deficits, surmounted inflation rates and excessive devaluation of Lira, the Ottoman currency. Based on the value of Lira against the currencies of three selected countries that were not in the war, we focus on the effects of news about the war on the foreign exchange rates at the Istanbul bourse from 1918 to 1919. Our results signify some dates, which match the official announcements of the war events and/or the official treaties.

Suggested Citation

  • Avni Önder Hanedar & Hatice Gaye Gencer & Sercan Demiralay & Ismail Altay, 2017. "Between war and peace: The Ottoman economy and foreign exchange trading at the Istanbul bourse," Working Papers 0108, European Historical Economics Society (EHES).
  • Handle: RePEc:hes:wpaper:0108
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    File URL: http://www.ehes.org/EHES_108.pdf
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    References listed on IDEAS

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    8. Phillips, Ronnie J., 1988. "War news and black market exchange rate deviations from purchasing power parity : Wartime South Vietnam," Journal of International Economics, Elsevier, vol. 25(3-4), pages 373-378, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    The Istanbul bourse; foreign exchange trading; the First World War; the armistices; economic recovery;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East

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