Resilience of the Turkish Economy During the Global Financial Crisis of 2008
Mustafa Kilinc (),
Zubeyir Kilinc () and
Ibrahim Turhan ()
Emerging Markets Finance and Trade, 2012, vol. 48, issue S5, 19-34
The authors explore the sources of the resilience of the Turkish economy to the global financial crisis of 2008. They first show that financial factors and fundamentals were very strong in Turkey before the crisis, and monetary and fiscal policies responded strongly to the crisis in a countercyclical way. They find that these strong fundamentals and prudent economic policies are reflected in the risk premium movements. Emerging market bond index (EMBI) spreads for Turkey increased slightly during the 2008 crisis and decreased back to the normal levels quickly. This was in large contrast to the crisis in 2001, when spreads increased significantly due to the weak fundamentals and decreased very slowly. Second, the authors quantitatively analyze the effects of risk premium movements during the crisis in a small open economy framework. They find that the risk premium observed in 2008 could not generate large movements in output, validating the point that the Turkish economy was resistant to the financial factors of the crisis.
Keywords: crises; EMBI spreads; financial factors; fundamentals; risk premium; Turkey (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:48:y:2012:i:s5:p:19-34
Ordering information: This journal article can be ordered from
Access Statistics for this article
More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().