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The current account balance is an important indicator of any economy’s performance and it plays several roles in policymakers’ analyses of economic developments. First, its significance comes from the fact that the current account balance, reflecting the saving-investment ratio, is closely related to the status of the fiscal balance and private savings which are key factors of economic growth. Second, a country’s balance on the current account is mainly the difference between its exports and imports, reflecting the totality of domestic residents’ transactions with foreigners in markets for goods and services, also the intertemporal decisions of residents. In This paper, current account balanance of the Turkish Economy, which was one of the main subjects for constructing economic policies with different priorities and significances attached to its determinants and was resulted from the different circumstances and needs of the periods, will be analyzed both historically and analytically. The subject will be analyzed in a more detailed fashion since the current account balance of Turkey underwent significant changes in the 1980s along the liberalization and stabilization policies in the economy.
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|Date of revision:||Nov 2009|
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