I was born in 1969, therefore since my childhood I witnessed several economic and political crises. In 1979 we went through the most serious economic crises and we learnt importance of having an export oriented economy. In 1994 we had another serious economic crises then we learnt the importance of having sound public finances and 2001 crises we learnt the importance of sound banking industry and now we have been starting to learn the importance of having a nation based on consensus.
What I argue here is not that Turkish economy doesn’t have any problems. We have some macro-economic problems. The most threatening one is the current account deficit. Therefore our economy needs to attract foreign capital to sustain the macro economic development. The need for foreign capital is the riskiest point of our economy. The international finance community perceive us as a risky country, because most evaluations involved that the current account deficit makes Turkish macroeconomic financing system fragile. However this perception is not really justified because the Turkish banking system is strong; Turkish public deficit is low and the Turkish economy is vibrant, all of which means that Turkey can still attract foreign capital.
Additionally, all Turkish banks could recently roll over their loans from the international money markets with reasonable costs so it shows that our banking system is very resilient and Turkey will continue to attract capital inflows.
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