Global Economic Crisis and Turkey

Authors : Nazan Balaban Bedirhanoğlu

Pages : 123-128

Doi:10.1501/Intrel_0000000228

View : 9 | Download : 6

Publication Date : 2009-05-01

Article Type : Research

Abstract :The current global financial crisis starting with the subprime crisis in the US is by no means new in the history of capitalism yet outreaching its precedents to the degree that it is recognized as the worst one since the Great Depression of 1929. Despite the attempts of the US Treasury, Federal Reserve and mainstream economists to constrain the current crisis in the financial realm, it manifests the structural problems of the real economy, which are no longer possible to ignore. The long-term problems in the capital accumulation and the weakening of aggregate demand made advanced economies far less dynamic and more vulnerable to crisis as such over the last thirty years. The crisis in the financial markets made these problems visible, while this crisis was not the real cause of those problems. In late 2007, the housing bubble in the USA started to deflate, the sub-prime mortgage crisis began to hit the major Wall Street Investment Banks, and the recession in the US economy was on the way.
Keywords : Global Economic, Crisis and Turkey, l financial crisis