Academic Journal
A hiccup in Turkey’s prolonged credit fueled economic transition : a comparative analysis of before and after the August rout
| العنوان: | A hiccup in Turkey’s prolonged credit fueled economic transition : a comparative analysis of before and after the August rout |
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| المؤلفون: | Taskinsoy, John |
| بيانات النشر: | Ahmet Gökgöz |
| سنة النشر: | 2019 |
| المجموعة: | University of Malta: OAR@UM / L-Università ta' Malta |
| مصطلحات موضوعية: | Devaluation of currency -- Turkey, Economic sanctions -- Turkey, Banks and banking, Central -- Turkey |
| Time: | Turkey -- Economic conditions -- 21st century |
| الوصف: | Purpose: The study attempts to analyze the impact of economic and non-economic factors on the Turkish economy which was plunged plunged into a currency crisis in August 2018 due in most part to sanctions and tariffs imposed by the U.S. Design and Methodology: Turkey’s economy is characterized as one with high inflation and persistent chronic deficits. The study was based on a literature review of the adverse impact of America’s weaponizing dollar and abuse of sanction power on Turkish economy. The study analyzes developments that laid the foundation for the collapse of Turkey’s a decade-long credit fueled economy. The broad analysis of Turkey’s most severe currency shock since the unprecedented 2001 economic crisis looks at various exogeneous and endogenous aspects. Findings: The study shows that Turkish economy possesses instability-inflicting imbalances such as high inflation, growing budget deficit, massive dollarization, alarming levels of external debt, and chronic current account deficit. The study concludes that the causes of Turkey’s gloomy economic situation are not all homegrown, its lackluster performance is blamed on attacks of non-economic basis. Another key finding is that Turkey is in desperate need of foreign capital flows as Turkey’s options to service its massive esternal debt through foreign barrowing have become substantially limited since the 2018 August rout. Practical Implications: In general terms, interest rates are of great importance as a monetary policy tool, but in Turkey, the relationship between the U.S. and Turkey sometimes plays a more pivotal role in determining the interest rate elevation and the consequent spike in inflation. The article offers insights to government authorities who should commit to structural and fiscal reforms to put the economy back on the right track for a faster recovery, or else let it collapse beyond repair. Originality/Value: The conclusions and findings in this study impact the perspective of the Turkish central bank with regard to policy responses ... |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | English |
| Relation: | Taskinsoy, J. (2018). A hiccup in Turkey’s prolonged credit fueled economic transition : a comparative analysis of before and after the August rout. Journal of Accounting, Finance and Auditing Studies, 5(4), 46-66.; https://www.um.edu.mt/library/oar/handle/123456789/47036 |
| DOI: | 10.32602/jafas.2019.37 |
| الاتاحة: | https://www.um.edu.mt/library/oar/handle/123456789/47036 https://doi.org/10.32602/jafas.2019.37 |
| Rights: | info:eu-repo/semantics/openAccess ; The copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder. |
| رقم الانضمام: | edsbas.38EAA3CA |
| قاعدة البيانات: | BASE |
| DOI: | 10.32602/jafas.2019.37 |
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