Journal of Business & Economic Policy

The Analysis of November 2000- February 2001Financial Crisis in Turkey
Assoc. Prof. Fatih Mehmet ÖCAL

Abstract
Economies do not grow continually, get smaller or can not stay stable at a certain grow rate. The changes in Real Gross Domestic Product, which show the increase, decrease or stability of the amount of production in reality, are the barometers of the countries. It is impossible for the countries to escape from the business cycles that arise as a result of the changes in the total demands in the amounts of production. The important thing for the countries here is; not to experience the business cycles as soon as possible and/or to enable the minimal economic demage when experienced. The globalisation and the offered financial instruments from the market, the acceleration in the globalization of the financial freedom after the legal decision no. 32 applied in 1989, stimulated the financial crysis in many economies as in Turkish economy and our country experienced of November 2000 and February 2001 crisis one after another as a result of liquidity squeeze and inour country the imbalance in the currency market, and political chaos also deepened the problem. It is inevitable for the countries whose economic infrastructures are unstable, to experience financial crisis frequently and to be affected seriously. One of the key features for the countries especially as Turkey that faced up with such crisis as November and February, is the growth in the dimension of the financial economy disproportionately from the real economy.

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