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
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.
Contents
Expanding the Eurozone. The stage of economic convergence for Bulgaria, Czech Republic, Croatia, Hungary, Poland and Romania
Business R&D investments in the EU: Main dynamics and economic effects
Volatility experience of major world stock markets
Unemployment hysteresis analysis for OECD countries
Culture as a driving factor for foreign direct investments in the Western Development Region of Romania
A Deep Neural Network (DNN) based classification model in application to loan default prediction
The new Keynesian Phillips Curve. Implications. Strengths and weaknesses
Corporate ownership structure and performance: An enquiry into India
Turkey’s macroeconomic policy challenges in the aftermath of the 2018 crisis: A sectoral financial balances analysis
Main aspects on the nature of dynamic models
An analyses model of the Romanian privately managed pension system
Dynamic models used in analysis capital and population
Poverty rate determinants in the Central and Eastern Europe member states
Wagner versus Keynesian Hypothesis: Role of aggregate and disaggregate expenditure in Pakistan
GARCH based VaR estimation: An empirical evidence from BRICS stock markets
Does FDI substitute exports of home country? A case of US FDI in select Asian economies
Exploring the role of institutions in cross country Malmquist productivity analysis: A two-stage double bootstrap DEA approach
Does the Mundell-Fleming Model apply to Poland?
The validity of Okun’s Law: Evidences from Indian economy