ECTAP
 
HomeDespre ECTAEventsPolitica editorialaTrimite un articolParteneri / link-uri utileArchiveAbonamentContact
 

ISSN 1841-8678   (print)
ISSN 1844-0029   (online)

News

Archive ECTAP

Note: for the period 1994-2003 the archive of the magazine will not be available online

Supplements ECTAP

If you cannot open the pdf file you need Adobe Reader.
download Adobe Reader

Creative Commons License

Theoretical and Applied Economics
No. 4 / 2019 (621), Winter

Turkey’s macroeconomic policy challenges in the aftermath of the 2018 crisis: A sectoral financial balances analysis

Sashi SIVRAMKRISHNA
Kautilya Entrepreneurship & Management Institute & Foundation to Aid Industrial Recovery,Bengaluru, India
Dhruva Teja NANDIPATI
Narsee Monjee Institute of Management Studies, Bengaluru, India

Abstract. In August 2018, Turkey experienced a major economic crisis when its exchange rate depreciated by around 40 percent in the course of just a few days. This led to a credit bust that soon dragged Turkey into a recession. This paper analysis Turkey’s predicament using the stock-flow consistent sectoral financial balances (SFB) model to delineate and evaluate the policy options open to Turkey at a juncture where the private sector has commenced a process of deleveraging or in other words, reducing its net financial accumulation of liabilities. Since the crisis erupted, Turkey has tightened both monetary and fiscal policies to control accelerating inflation and the depreciating lira, which would then – it is hoped – revive investment and exports. However, prevailing uncertainties on account of deteriorating Turkish-US relations may prove a dampener on the success of these policies.

Keywords: sectoral financial balances, Turkey, currency crisis, credit leveraging, deleveraging.

Download the full article:  

Contents

Open acces

ECTAP

Search

BOOKS

The Economicity. The Epistemic Landscape, Marin Dinu, 2016

Partners


ISSN 1841-8678 (ediția print) / ISSN 1844-0029 (ediția online)
© Copyright Asociația Generală a Economiștilor din România (AGER) / General Association of Economists From Romania  (GAER)
Redacția: 010702, București, Calea Griviței nr. 21, sector 1, E-mail: economia.ta@edeconomica.com

© 2006-2019 AGER