Globalization, mortgage grippe and turkey

Abstract

The aim of this study is to make clear to the concept of economic crisis clear and in the light of this step, to examine the financial crisises that happened both in Turkey and in the world in different dimensions and to evaluate their results. As it is known, financial liberalization that started in 1980s affected world’s economies deeply. Having gone into the grocess of financial liberalization is one of the basic reasons behind the crisises that happened in Latin America countries in 1980s, in Southern East Asia at the end of the 1990s, in Mexico in 1994 and 1995 and at the end in Turkey. Indeed, Turkey has gone into the process of financial liberalization with the convertibility of TL in 1989. This was a turning point for Turkey, and since then, Turkey has faced various financial crisises. So, till the financial crisis happened in November 2000, the experiences having been had in Turkey were not a surprise. Most economists in that period expressed their worries by stressing anxiety stems from deficit’s being higher than expected, together with structural reforms being behind schedule and not providing political stability. As a result, our country has faced many crisises, like 2000 November crisis, and it is a country which should be alert under the shadow of cirisis. “Mortgage Grippe” that surrounded the world like on epidemic, and which is getting stronger day by day started to dishearten people, made people to have negative expectations and destroyed the spirit of entrepreneurship, the political stability had been provided environment of trust had been revived, and “environment of trust” that is called as on appropriate period by political actors, was about to be provided. As being the world has faced up one of the most serious crisis to now. This financial crisis affected Turkey’s economy deeply, parallely with the world’s economy. In this study, although the crisises faced after 1990 and their current effects have decreased, global finacial crisis that the world is facing today, is analyzed in great details. Also, it is argued that whether the crisis is the result of market’s being unsuccessful or the result of etatism and command economy.