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Turkey in Turbulence: Heterodoxy or a New Chapter in Neoliberal Peripheral Development?

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  • Özgür Orhangazi
  • A. Erinç Yeldan

Abstract

While global monetary tightening by central banks, led by the US Federal Reserve, has heightened concerns about a slowdown in the world's economy and an increased likelihood of debt crises across developing countries, Turkey has attracted attention for doing the opposite. Indeed, the country's economic policy makers have intensified monetary easing towards credit expansion at the risk of increased exchange rate instability. This article analyses the Turkish case and makes four contributions. First, it establishes a framework through which we can understand and interpret the policy choices of the government. Second, it shows the binding effects of the trilemma in the context of an economy fully integrated in the global economy and discusses how the government tried to tackle these effects through a series of ad hoc policy measures. Third, the article discloses the distributional consequences of such policy manoeuvres and argues that the burden of adjustment fell on the shoulders of wage labour, while various competing rentier interests benefited from these policies. Fourth, the authors analyse these policies from a broader perspective of whether they can be interpreted as a courageous attempt by a peripheral developing economy to claim some policy space, or whether these policy choices in essence only amount to a deepening of neoliberal peripheralization.

Suggested Citation

  • Özgür Orhangazi & A. Erinç Yeldan, 2023. "Turkey in Turbulence: Heterodoxy or a New Chapter in Neoliberal Peripheral Development?," Development and Change, International Institute of Social Studies, vol. 54(5), pages 1197-1225, September.
  • Handle: RePEc:bla:devchg:v:54:y:2023:i:5:p:1197-1225
    DOI: 10.1111/dech.12792
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    References listed on IDEAS

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    4. A. Erinc Yeldan, 1998. "On Structural Sources of the 1994 Turkish Crisis: a CGE modelling analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(3), pages 397-414.
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