A brief look to impact of elections on turkish economy

The money supply had been expanding before 2011 elections of Turkey with the impact of rising credit demand of the corporations and the households. This increase on money supply might somehow be artificial and not trustworthy due to the decreasing money demand. This was the main reason for the fall of the value of Turkish Lira. Even though the money supply had increasing the money demand was not increasing with the same speed due to the uncertain environment. The purpose of this study is to correlate the increase of the money supply and inadequate money demand with the diminishing value of Turkish lira. Data collection method is used. The value of the money is determined by the demand as much as supply. The unmet demands are accepted as inadequacy of supply and the rise of money supply which is created by the banks have been accepted as stable strategy for decades. But the mortgage crisis has shown that it is far from being stable. Therefore the idea of increasing the supply with the help of credits, before the rise of the demand should not be preferred to keep the currency stable