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Twin Crises in Turkey: A Comparison of Currency Crisis Models

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  • Hakan Yilmazkuday

Abstract

This paper analyzes the twin crises in Turkey experienced in 2000 and 2001. After a detailed survey of currency crisis models, together with a brief descriptive overview of the crises in Turkey, the similarities among the twin crises in Turkey and the models that have been developed to explain preceding crises in the world are investigated. It is found that the Turkish twin crises cannot be explained by using any individual generation of models, namely first generation models, second generation models or third generation models. Instead, a combination of these models is more appropriate to explain the details of the twin crises.

Suggested Citation

  • Hakan Yilmazkuday, 2008. "Twin Crises in Turkey: A Comparison of Currency Crisis Models," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 5(1), pages 107-124, June.
    • Handle: RePEc:liu:liucej:v:5:y:2008:i:1:p:107-124
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    More about this item

    Keywords

    Currency crisis ; speculative attack ; exchange rate targeting ; Turkey;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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