[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v42y2006i1p5-32.html
   My bibliography  Save this article

The Turkish Crisis of 2001: A Classic?

Author

Listed:
  • CEM AKYUREK
Abstract
In February 2001, Turkey became the latest emerging market to experience a devastating crisis, following the collapse of its soft exchange rate peg. The crisis severely damaged the country's banking system and led to an unprecedented contraction in economic activity. The boom that preceded it seemed to be relatively short lived, as the initial rush of capital outflow occurred just eleven months after the start of the program, and the fatal exit just three months later. This paper discusses the factors that seemed to play an important role in the collapse of Turkey's International Monetary Fund (IMF)-supported exchange rate-based stabilization plan just thirteen months after its commencement. It is often difficult to attribute such crises entirely to a single factor, and not always possible to arrive at a strong verdict by analyzing economic developments in light of, or in the manner formally suggested by, the alternative models commonly used to analyze currency crises in the literature. In the Turkish case, enumerating the many factors that may have contributed to the collapse is important and very useful--yet this should not obscure the critical role played by the failure to establish or achieve tangible progress toward a sustainable fiscal regime. Not recognizing this fundamental weakness could easily lead observers to emphasize design flaws as the main culprit or to argue that the collapse could have been avoided if several other factors had broken more in Turkey's favor.

Suggested Citation

  • Cem Akyurek, 2006. "The Turkish Crisis of 2001: A Classic?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 42(1), pages 5-32, February.
  • Handle: RePEc:mes:emfitr:v:42:y:2006:i:1:p:5-32
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D87H1YUKX8AR2DTF
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Utku Akseki & Abdurrahman Nazif Çatık & Barış Gök, 2014. "A regime-dependent investigation of the impact of macroeconomic variables on the housing market activity in Turkey," Economics Bulletin, AccessEcon, vol. 34(2), pages 1081-1090.
    2. A. Nazif Çatik & Christopher Martin & A. Özlem Onder, 2011. "Relative price variability and the Phillips Curve: evidence from Turkey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 38(5), pages 546-561, September.
    3. Ferda Halicioglu, 2008. "The J-curve dynamics of Turkey: an application of ARDL model," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2423-2429.
    4. Ferda Halicioglu, 2007. "The Financial Development and Economic Growth Nexus for Turkey," EERI Research Paper Series EERI_RP_2007_06, Economics and Econometrics Research Institute (EERI), Brussels.
    5. Salih Turan Katircioglu & Mete Feridun, 2011. "Do macroeconomic fundamentals affect exchange market pressure? Evidence from bounds testing approach for Turkey," Applied Economics Letters, Taylor & Francis Journals, vol. 18(3), pages 295-300.
    6. Necmiddin Bagdadioglu & Catherine Waddams Price & Thomas Weyman-Jones, 2006. "Measuring Potential Gains from Mergers among Electricity Distribution Companies in Turkey using a Non-Parametric Model," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2006-13, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    7. Halicioglu, Ferda, 2008. "The bilateral J-curve: Turkey versus her 13 trading partners," Journal of Asian Economics, Elsevier, vol. 19(3), pages 236-243, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:42:y:2006:i:1:p:5-32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.