For many observers, Turkey’s performance during the “2007+ global financial crisis”1 was puzzling. In the first half of the 2009, Turkey was one of the worst affected countries in the world. In addition, the Turkish government was too slow to react, and the measures taken seemed...

During the last two and half decades Turkey has suffered from three foreign exchange crises resulting in considerable loss of income. The paper argues that the country in order to avoid the foreign exchange crisis has to stay away from having too big current account deficits. Noting that under...