THE LIBERALIZATION AND INSTABILITY PROCESS IN TURKISH ECONOMY

Abstract

Today, for Turkish economy, its current account deficit is pointed as the most important indicator in the meaning of fragility. To finance the large current account deficits is also seen as a key problem for Turkish economy. Therefore, exchange rate is the most sensitive macroeconomic variable in Turkish economy. This is not a new problem and also not unique. The problems in the economy connected to the issue arranged like that: current account deficit- level of exchange rate- preference of domestic or foreign input- unemployment- inflation. All these problems can be defined as telescopic for Turkish economy. The origins of these difficulties have to be searched at the steps which taken thirty-thirty five years ago for neoliberal transformation. The main purpose of this study is to remind this process which the economy has faced as liberalization but also as unstability.