Paper ID : 536
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Assoc. Prof. Dr. Serdar Öztürk
Session : 3C Finans
The Global Economic Crisis and its Effects on the Monetary Policy of Turkey
Küresel Ekonomik Kriz ve Türkiye’nin Para Politikaları Üzerine Etkileri
- Assoc. Prof. Dr. Serdar Öztürk (Nevşehir University, Turkey)
- Asst. Prof. Dr. Ali Sözdemir (Cumhuriyet University, Turkey)
- Mrs. Özlem Ülger (Nevşehir University, Turkey)
Capitalism has faced the most severe and the longest crisis since 1929. Resource of the emerging financial crisis in the second half of 2007 was mortgage crisis that experienced in the United States. The collapse of housing market has caused great instability in the financial markets and then turned into the strong liquidity crisis and spread all over the world. The impact of global economic crisis on the world economies in the last quarter of 2008 was very fast and it occured in a devastating way. In this process, the asset prices declined, capital of financial institutions seriously damaged and this caused bankruptcy of many large financial organizations such as Lehman Brothers. In this context, the growth rates in the world fell down quickly, external demand contraction and global export decreased. At this point, developed countries applied large scale financial incentive packages. Especially, the Central Banks of developed countries have provided exceptional levels of liquidity that is used as a monetary policy tool by taking the risk of deterioration of their balance sheets. During this period, as a result of these policies followed by money and finance authorities have changed only the shape of global crisis and as a result the financial crisis has turned into a debt crisis. The effects of Global Economic Crisis on the Turkish economy emerged prominently in the last quarter of 2008. However, in comparison with many European countries, it is clear that all dynamics have became more favourable for Turkey after 2010.
JEL codes: G21, G33, E44
Öztürk, Serdar, Sözdemir, Ali, Ülger, Özlem (2012). "The Global Economic Crisis and its Effects on the Monetary Policy of Turkey" in Proceedings of International Conference of Eurasian Economies 2012, pp.298-304, Almaty, KAZAKHSTAN.
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Session 3C: Finans