ECONOMIC AND POLITICAL INTERACTION OF 2001 CRISIS: IMPLICATIONS FOR 2008 RECESSION?

Abstract

As it is known, Turkey experienced a severe economic crisis in the year 2001. This economic crisis has been costly for the Turkish economy and has typically been accompanied by a collapse of output and employment as well as striking declines in real wages. Not only economic insufficiencies and bottlenecks but also political uncertainty had sizeable impacts in the formation of economic crisis. The 2001 Crisis interestingly caused a set of catastrophe and it is worthy to analyze its emergence, mal-administration, and wide damage on the Turkish economy and to show the structure that transformed political climate in the post-crisis period. The interaction of political and economic dimensions of 2001 crisis also accompanies strong implications for 2008 recession and this paper finally discusses lessons of 2001 crisis for 2008 recession through the lenses of interplay between politics and economics.