Global Economic Crisis and Turkey

Abstract

Global Economic Crisis and Turkey

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